Is S&P wrong? It took a large injection of illegal Fed funny money to keep them operating. That's the #1 indicator of a company that has utterly failed.
I don't believe for a second that JPM is doing this out of the goodness of their cold corporate hearts, and buying up bad debt (or the risk on it) isn't something they're doing with their own cash or without a path to profit.
I think the Fed's using JPM as a proxy here, feeding them the capital with the explicit agreement that they'll use it to prop up struggling banks while keeping the Fed's hands "clean".
The S&P has no business downgraded anyone to Junk status. Whores shouldn't cast stones at streetwalkers.
Yes, they are.
Is S&P wrong? It took a large injection of illegal Fed funny money to keep them operating. That's the #1 indicator of a company that has utterly failed.
If the Fed will bail them out then S&P are wrong.
I don't believe for a second that JPM is doing this out of the goodness of their cold corporate hearts, and buying up bad debt (or the risk on it) isn't something they're doing with their own cash or without a path to profit.
I think the Fed's using JPM as a proxy here, feeding them the capital with the explicit agreement that they'll use it to prop up struggling banks while keeping the Fed's hands "clean".