Oct
25

Stop the Presses: I agree with Barney Frank

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Now don’t be so surprised, I actually have always liked and respected Barney Frank.  I always have thought he was pretty straightforward and did what he said.  So while I may disagree on many (ok, most) policy issues, I do have a better than average respect for the man.  He came out and said how wrong he thought the lawsuit against JP Morgan for the actions of Bear Stearns prior to acquiring them at the behest of the federal government.  The attorney general of New York obviously has aspirations of higher office and wants to use this as a pedestal.
I also agree that Bank of America and the Countrywide deal is a different animal altogether.  If you go out and buy a company and have the opportunity to do your due diligence, then you buy whatever liabilities come with that purchase.  I get that.  However, if the government pressures you to step in and help out, and in doing so, you do not even have time to do due diligence and make a clear decision that is very different.
In fact, at the time, they lauded Jamie Dimon for doing a deal that might not make sense out of a patriotic sense of helping the economy.  Sorry, Jamie- No Good Deed Goes Unpunished.

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