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".
Actually, the money came from JPM. They haven't used the Federal Reserve credit line yet.
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".