Fresh from the New York Times today is a pretty alarming article. A NYTimes reporter got access to a JP Morgan conference call where they discussed how to use the $25 Billion dollars of tax money. No mention of new loans was made, instead the talk covered the eoncomic conditions and where the bank should focus their attention in the upcoming months. When a US Representative was interviewed they were clearly not happy and there was discussion of having the CEO’s of the major banks back up on Capitol Hill if they don’t start making loans.
If banks start hoarding money, the US economy will continue to fall further. Consolidation will increase dramatically and the large banks will get even bigger as they gobble up the smaller and regional banks. We are in for some prolonged pain if the banks don’t get to lending and lending quick. Small businesses are out their dying on the vine right now (I know I have a couple) because access to capital is unvailable. Mr. Dimon if you’re out there, start lending!
