JPMorgan Takes over Finances for Kentucky State Government

[osoab]

JPMorgan Takes over Finances for Kentucky State Government (http://www.allgov.com/controversies/viewnews/JPMorgan_Takes_over_Finances_for_Kentucky_State_Go vernment_110806)



The bank that played a major role inflating the house bubble, and consequently helped cripple Wall Street in 2008, has become the state bank of Kentucky.


Name the financial transaction and JPMorgan Chase is now in charge of it: deposits, payroll checks, disbursing federal monies and more. Kentucky’s state government handles $12 billion to $15 billion a year, and JPMorgan will have its fingers on all of it.

In return the bank will be paid $1.3 million in state fees.

Kentuckians can only hope their government’s partnering with JPMorgan Chase won’t backfire like it did in Alabama, where a complicated bond-financing scheme crafted by the bank for a new sewer treatment plant crippled Jefferson County and left it teetering on bankruptcy.

[sirgonzo420]

son of a bitch

[osoab]

son of a bitch

I thought you and mick would like that.

[Cebu_4_2]

Was thinking of locating there, must think otherwise now.

[MNeagle]

Who's administering the food stamp program (& collecting a fee as well)? Brain lapse... Is is JP? Or GS?

[sirgonzo420]

Who's administering the food stamp program (& collecting a fee as well)? Brain lapse... Is is JP? Or GS?

JP is in charge of the federal program, unless I am much mistaken (which isn't usually the case ;D ).

[ximmy]

To the rescue... http://i153.photobucket.com/albums/s222/chrisneros/chase.jpg

[mick silver]

fuckin whores . i have a few more name but i will know them for them later

[mick silver]

you can get some great prices on land here dont let that stop you . they will run the paper for every state before long

[ximmy]

A little MOReON JP's decade...

A global corporation with more than $2 trillion in assets and operations in 60 countries, JP Morgan Chase has been a major figure in the ongoing global financial crisis. As one of the largest private banks in the U.S., the bank made incredible amounts of money by underwriting many of the questionable loans (sub-prime, zero down, adjustable rate) that fueled the American housing bubble.

It then made even more money by packaging hundreds of these shitty loans into a single “product,” a mortgage backed security, which it sold like Twinkies to pious religious non-profits, filthy-rich hedge fund managers, municipal fire-fighters, retired auto-workers, and the like, each security effectively putting these groups on the hook—and not JP—for the shitty loans that it had helped create.

When, inevitably, individual homeowners began to default on their loans, thereby triggering the stock market collapse of 2008, JP Morgan found a way to make money on that, too, by buying insurance (known as credit default swaps) on the shitty securities of shitty mortgages that it had sold to unwitting investors.

For good measure, the U.S. government handed the corporation $25 billion in TARP funds, $30 billion in U.S. treasury backing to purchase bankrupt Bear Stearns (previously a global leader in mortgage backed securities), and the biggest chunk of the $129 billion of taxpayer-provided money earmarked for creditors of bankrupt credit default swaps provider AIG.

Since 2002, the bank has turned its attention to another easy revenue source: city, state and national government debt.

Example:

In the case of Birmingham, Alabama, Rolling Stone journalist Matt Taibbi has reported how a city sewer project initially estimated to cost $250 million generated “a total of $1.28 billion just in interest and fees on the debt,” most of which went into the private coffers of J.P. Morgan. The result for Birmingham? “Between 2008 and 2009,” Taibbi notes, “the annual payment on Jefferson County’s debt jumped from $53 million to a whopping $636 million.” The debt now stands at $4800 per resident.

http://www.alternet.org/story/151917/how_jp_morgan_took_over_all_kentucky%27s_financial _services%2C_and_why_you_should_be_scared/?page=entire