Hank Paulson is promising to write checks to banks, even if they don’t need it in order to ‘foster a lending environment’ as Paulson says.

For a very long time I have said that the bail out package would not ‘fix’ the markets, instead it only drains the federal balance sheet and puts the United States at risk of a severe economic dislocation (i.e. – debt default, bond market crash, etc).

The bail out bill (a.k.a. TARP, and now the ESSA) is turning into more of a disaster with every passing day.

One of the financial institutions to receive $25 Billion tax payer dollars is JP Morgan Chase (JPM). Recently a reporter for the New York Times accessed an employee only teleconference to discuss the TARP program and the money that Hank Paulson will be giving them. JP Morgan did not know that a reporter was listening in on their plans.

JP Morgan said in reference to the question on the Government provided money:

“Twenty-five billion dollars is obviously going to help the folks who are struggling more than Chase,” he began. “What we do think it will help us do is perhaps be a little bit more active on the acquisition side or opportunistic side for some banks who are still struggling. And I would not assume that we are done on the acquisition side just because of the Washington Mutual and Bear Stearns mergers. I think there are going to be some great opportunities for us to grow in this environment, and I think we have an opportunity to use that $25 billion in that way and obviously depending on whether recession turns into depression or what happens in the future, you know, we have that as a backstop.”

Yep.. that big emergency ‘package’ that had to be passed or the world was going to come to an end is being used to help big corporations grow and build their company. I thought companies were supposed to do that on their OWN dime.

You can read the full article HERE.