JP Morgan’s CEO Dimon Tells Government to Lay Off…Guess What…He’s Right!

I listened to JP Morgan’s CEO Jamie Dimon on CNBC last week. Becky Quick asked him about the TARP money. She said JP Morgan got $25 billion and wanted to know if they were lending it out or if they were “hoarding” it as some reports have stated.

Dimon’s answer was simple. First, he said, “We didn’t need it and didn’t want it,” Second, he stated that JP Morgan is trying to do what the government is asking (more lending), but they are trying to make loans the “right way.”  In other words, the government shouldn’t force JP Morgan to take money and then force them to make risky loans.  He’s right.

And, haven’t we seen that this Congressional “mandating of loans” doesn’t work? Congress mandated to Fannie and Freddie that they HAD to make loans to help home ownership become more available to everyone.  Translation: drop standards and lend, lend, lend….even if homebuyer is unqualified.
This complete “lack of respect” for proper lending standards has lead to historic foreclosure rates and a housing depression.  Dimon is right to stand his ground.

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