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Banks Using $700 Billion Bailout To Buy Other Banks, Not Make More Loans [Swindles]

washington told taxpayers a major rationale for us to fork over $700 billion to banks was to save the american concision by making loans more accessible, but it looks in the mood for at least at chase they to some extent use it to buy other banks, nyt reports.

Times reporter Joe Nocera listened in on a Chase employee-only conference call and one employee asked, “Chase recently received $25 billion in federal funding. What effect will that have on the business side and will it change our strategic lending policy?”

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Translation: When are we going to start making loans?The executive moderator replied:

twenty-five billion dollars is obviously going to help the folks who are struggling more than chase.. what we do ponder it will help us do is dialect mayhap be a little bit more active on the acquisition side or opportunistic side for some banks who are up till struggling. and i would not assume that we are done on the acquisition side just because of the washington mutual and hold out stearns mergers. i remember there are universal to be some great opportunities conducive to us to grow in this mise en scene, and i of we organize an possibility to use that $25 billion in that way and obviously depending on whether recession turns into depression or what happens in the to be to come, you know, we have on the agenda c trick that as a backstop.

Later, the same executive said,

we would entertain the idea that accommodation volume resolve continue to go down as we on to tighten credit to fully over the high cost of pricing on the accommodation side.

Translation: We’ll use that $25 billion as a war chest to buy other banks, and hoard it in case times get tougher.

“Read that answer as many times as you want,” wrote NYT, “You are not going to find a single word in there about making loans to help the American economy.”

Furthermore, a new tax break allows banks to immediately deduct any losses they that are on the books of the banks they acquire.

What is the government doing to make banks use the money for loans? Apparently, jack, except for asking really really nicely. If this continues and banks don’t use their government handout to open up loans, this bailout will be the single greatest ripoff in American history, and those responsible are naive if they don’t think they’ll have a giant bloody revolution on their hands—and I mean that in the literal sense.

So When Will Banks Give Loans? [NYT] (Photo: Getty)

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