The FT reports that JP Morgan Chase and Citigroup have announced that they will not participate in PPIP, the Treasury’s plan to incentivize investors to purchase “legacy assets” (i.e. toxic waste).
So let me get this straight:
1. JP Morgan Chase and Citigroup demand bailout money from the Treasury, claiming an impending crisis. The Treasury forks it over.
3. Congress is outraged and places executive compensation limits on PPIP money.
4. Then JP Morgan Chase and Citigroup say that they won’t participate — thus, suggesting that they really aren’t in that bad of a shape to begin with.
So whom am I supposed to be angrier at? JP Morgan Chase and Citigroup for taking taxpayer bailout money? The morons who gave it to them? Or the Very Serious economics and finance “experts” who insisted that this was all necessary?