Implied Dissent

Wednesday, March 19, 2008

Follow up

I've read some people say that the Fed hasn't bailed out anybody in this deal. Wrong. They have most certainly done so. Not BSC's shareholders, but rather their bondholders. That, and they've gift wrapped BSC's equity for JPM, handing them essentially $10bn. If the Fed was truly a lender of last resort, there wouldn't an issue. Just business. Unless the details change, that's not what's happening here.

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