One of the worst and most egregious cases of Welfare avarice I ever saw..

[TM7]

FYI....TM7
.  77% of JP Morgan’s Net Income Comes from Government Subsidies
.

   Submitted by George Washington on 07/01/2012 15:44 -0400

 

  JP Morgan’s credit rating would be much lower without government backing.
As Bloomberg noted last week:
      JPMorgan benefited from the assumption that there’s a “very high likelihood” the U.S. government would back the bank’s bondholders and creditors if it defaulted on its debt, according to the statement. Without the implied federal backing, JPMorgan’s long-term deposit rating would have been three levels lower and its senior debt would have dropped two more steps, Moody’s said. And as the editors of Bloomberg pointed out a couple of weeks ago:
      JPMorgan receives a government subsidy worth about $14 billion a year, according to research published by the International Monetary Fundand our own analysis of bank balance sheets. 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.

***

With each new banking crisis, the value of the implicit subsidy grows. In a recent paper, two economists — Kenichi Ueda of the IMF and Beatrice Weder Di Mauro of the University of Mainz — estimated that as of 2009 the expectation of government support was shaving about 0.8 percentage point off large banks’ borrowing costs. That’s up from 0.6 percentage point in 2007, before the financial crisis prompted a global round of bank bailouts.
To estimate the dollar value of the subsidy in the U.S., we multiplied it by the debt and deposits of 18 of the country’s largest banks, including JPMorgan, Bank of America Corp. and Citigroup Inc. The result: about $76 billion a year. The number is roughly equivalent to the banks’ total profits over the past 12 months, or more than the federal government spends every year on education.

JPMorgan’s share of the subsidy is $14 billion a year, or about 77 percent of its net income for the past four quarters. In other words, U.S. taxpayers helped foot the bill for the multibillion-dollar trading loss that is the focus of today’s hearing. They’ve also provided more direct support: Dimon noted in a recent conference call that the Home Affordable Refinancing Program, which allows banks to generate income by modifying government-guaranteed mortgages, made a significant contribution to JPMorgan’s earnings in the first three months of 2012. Way to suck at the government   [font=]http://www.zerohedge.com/contributed/2012-07-01/77-jp-morgan%E2%80%99s-net-income-comes-government-subsidies[/font]  [font=].[/font]  [font=].[/font]  arged     Oh I thought you were going to talk about the huge revenues JPM gets from the welfare system.
How lucky for them that everyone uses welfare to hate on the poor, when really it's welfare for JPM. They go totally blameless.
The EBT and welfare distribution system not only lines JPM's pockets, it also exploits the poor with outrageous fees.
http://www.npr.org/templates/story/story.php?storyId=136072292
In Michigan, the state added a single $1 to every EBT account, i.e. each food stamp recipient had $1 cash ONLY on their card. The cost to get that $1? Well you paid an ATM fee of a $1.
Those damn poor people!

[twoshooter]

To speak of mandates...... how about social security having to be direct deposited, and you must have a bank account ? I work for my state as a casemanager, my pay is required to be direct deposited, so I MUST have a bank account. Why should my employer be able to require a 3rd party be involved??? And how about this. on all our paper bills it says " this note is legal tender, for all debts- public and private", but if I walk into the courthouse to pay my property tax, they won't accept CASH. SO, do Banks get a break?? You bet your bippy they do! You are required to use their services. How about seizure and forfeiture laws ? If you have 10K in cash, better have good documentation, or they take it and keep it. You need to put it in a bank. EVERY account is FDIC insured.

Too big to fail ?? If it is too big to fail, it is too big to EXIST. They should have been broken up immediately once the crisis was stabilized, and regulations put in place to prevent any to ever grow that large again. Why are we still pussyfooting around with these guys??? (rhetorical)

[mechanic]

IMO the reason the stock market has done as well as it has, is that the gov. has "propped" it up.  When  the funny money runs out it will drop like a stone.
 
Ben