Chase Bank Bailouts

The Chase Bank bailouts were a part of the largest federal intervention in the financial sector, to date, in the amount of tax payers’ money that was given away. This was all a part of the TARP or Troubled Assets Relief Program that the government started so they could give away $15 billion of tax payers’ money to private industry, so they would stay solvent after milking profits on bad investments they made. This was on top of the $700 billion already given to them as part of the bail out.

Chase, along with Citibank and Wells Fargo, received $25 billion each as their payment in an effort to make these private intuitions solvent again. The main reason the government made this bailout available was to help keep the country from falling into a deep recession. The bail out money was supposed to be used as capital so the banks could start giving out loans again. As everyone knows by now, this is not what happened to the money.

The large financial institutions, which were too large to allow them to fail, just purchased more banks to make themselves even larger than before.

The sad fact of events then followed that the federal government announced to the majority that received the bailout funds that they could not settle their debt with the fed for $68.3 billion, instead of the $229.7 billion these select few had received. This group included Chase, Citibank, Goldman Sachs, Morgan Stanly, US Bancorp, and Capital One Financial.

As a result of this financial bailout by the federal government with tax payers’ money, Chase was allowed to make a profit in 2009 of $97 million. To top this, the first quarter profits for Chase in 2010 were at $3.3 billion.

If you decide to use Chase Online Banking, rest assured you are using a financial institution that now knows how to handle money and make a profit while the rest of the economy is in a recession. The Chase Bank bailout actually turned into a profit bonanza for this financial institution.

For additional resources about Chase Banking services on this website, please view Chase Online Banking 2011.

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