JPMorgan & Other Financials Still Receiving Billions Annually From U.S. Taxpayer: TARP Institutionalized, When Dimon Should Be Institutionalized
Is JPMorgan worried about its potential $18 billion dollar loss? Perhaps not, when it could be offset by $14 billion in United States taxpayer subsidies – that’s 77 percent of its total net income in the last four quarters! And this comes as no surprise as over the last several decades governments and central banks around the world have shown willingness to keep their banking brethren solvent in times of opportunity bringing crisis.
Senator Jeff Merkley (D-Ore.) pointed out last week to the Senate Banking Committees’ Jamie Dimon homecoming that the bank would be bunk without taxpayer money – insolvent.
Dimon’s defensiveness suggests lies, as he “roared” that the only reason the bank took government funds and borrowed at near-zero percent interest rates from the Federal Reserve was because the government made it. It’s the excuse of a child. Woah, come on Jamie, no reason to freak out or anything…
Despite his riposte, the bank is still receiving approximately $14 billion a year, according to the official numbers by Bloomberg, which was based on an International Monetary Fund study. According to Bloomberg:
The money helps the bank pay big salaries and bonuses. More important, it distorts markets, fueling crises such as the recent subprime-lending disaster and the sovereign-debt debacle that is now threatening to destroy the euro and sink the global economy.
The IMF deduced that “too big to fail” banks borrow at about 0.8 percentage points less than do smaller banks. This lower interest rate means around $76 billion in lost revenue for the U.S. taxpayer and savings for the 18 biggest U.S. banks. $14 billion thereof is JPMorgan’s.
That’s not all the funds, of course, that JPMorgan is being force-fed, as Dimon noted in a conference call recently that the Home Affordable Refinancing Program, which enables banks to generate income through the modification of government guaranteed mortgages, significantly contributed to JPMorgan’s earnings in the first three months of 2012.
These subsidies to major banking institutions is a huge source of the rampant fraud and manipulation in financial markets as criminal banks pen their “Great Work” of ensuring “stability” in the financial sector – that is, the institutionalization of fraud.
Nothing to worry they have, as the countless hours of toil and labor of individuals – forced to pay burdensome taxes - will guarantee any missteps in the casino of high finance as transnational banks, central banks and keystone steering groups play their part in consolidating acute power among the top banking brass of the planet.