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Bloomberg: JP Morgan receives government subsidies worth $14 billion /year

Discussion in 'The Okie Corral' started by Atlas, Jun 19, 2012.

  1. Atlas

    Atlas transmogrifier

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    Last edited: Jun 19, 2012
  2. Z71bill

    Z71bill

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    Fuzzy math --

    Keeping interest rates low looks like it gives a bank something for less -

    Hard to say this is not true -- their interest expense will be lower -

    But a bank will make more money when long term interest rates are higher -

    So it may cost the bank less in interest expense - but they would actually make more in net profit if interest rates were higher.

    Would you rather borrow at 1% lend at 3% or Borrow at 4% and lend at 7%?

    Course this is a generalization - but you can't just look at one side of the P&L - I will bet Dimon would much rather have interest rates higher --