Tags: Subsidy

Jaime Dimon is a Welfare Baby

There is nothing more annoying than seeing the giant “welfare baby” gangster named Jaime Dimon parade around dismissing criticism of the banks, acting as if he has skills, when in reality his entire existence would have vaporized if not for his ability to infinitely suck at the teat of the Federal Reserve.

Hey, but don’t take my word for it.  Here are some excerpts from a Bloomberg article published Monday:

To be precise, JPMorgan receives a government subsidy worth about $14 billion a year, according to research published by the International Monetary Fund and 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.

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.

Read full article here.