ricep5Premium
join:2000-08-07
Jacksonville, FL | reply to danball1976
Re: HUH? While this stretching off the topic....
TARP was designed to bring liquidity to the markets that banks use to lend each other. When Lehman folded, all the banks constrained overnights to preserve their own capital. Everyone was worried about each bank making calls on each others accounts.
While JPMC got blamed for starting the collapse for refusing to let Lehman draw down off its collateral accounts, which let to its bankruptcy....Treasury ordered each of those banks to accept the TARP funds to maintain overnight liquidity.
While few banks and investment houses really actually needed the funds, by providing to all the majors it essentially removed any opportunity of any liquidity squeeze by anyone.
JPMC is a really well run bank, but don't confuse the words of one analyst in a separate division from what you can get from them in the retail (Chase) space.
Back on topic...I too don't like the short term disease some of these analysts have. Too much focus on "growth" and quarterly profits at the expense of R&D and long term viability. But then isn't that the problem with our culture? Give me what I want now, I don't care what impact it has? |
