I have a cousin who works for JP Morgan. The Fed did something like that to them back in 2007, loaned them money they didn’t want or need and required them to buy a few failing banks. It’s seems to be the Fed’s way to absorb failing financial institutions before they publically crash and burn. One of the banks JP had to buy back then they bought for cents on the dollar and it was still way too much, that’s how bad of shape the bank was in - and the public had no clue. It was the same type of weekend assessment - JP went in on a Friday by Sunday they knew it was worth about $2 per share. They acquired it on Monday morning for $12 per share - which was still way below what it was trading at. So JP looks like a vulture to the public that don’t know what went on behind the curtain.
That was Bear Stearns, trading at $2, bought for $10 a share.
I was told (by a JPM Vice President) that Treasury Secretary Paulson called Dimon on the weekend, asking him to buy the bank, I forget which one. Dimon told Paulson he did not want to buy the bank, and that he was at a family function, and hung up on the Secretary. By Monday morning, though, the ink was dry on the contract.
I got raped the other way around... I was a Wachovia Bank shareholder... when the mortgage crisis hit, Wachovia was in decent shape as it didn’t have the exposure to the fiasco of mortgage backed instruments. Wachovia refused to take TARP money it didn’t want. For some reason I can not understand the scumbags on the board at Wachovia got in bed with Wells Fargo and soon enough Wells Fargo bought up Wachovia for 10 cents on the dollar. I lost 90% of a really good sized chunk of holdings that I had inheireted as First Union Stock back in the 1990s... it just sat in a DRIP... and First Union was going up and up and up and the dividend was going up and up and up... it was growing exponentially... then Wachovia and First Union joined up. Then the market tanked.