Quote:
Originally Posted by HejiraNYC
. . . And about this so-called 30 billion-dollar "loan," do you honestly think that it will ever get paid back?  . . . . |
I do not think it is a loan. I think the Fed backed the obviously troubled debt. So, if that debt does what they think it will and goes bad (if it is not already there) JP Morgan is not responsible. So, the Fed is only on the hook to absorb the losses. If the losses do not happen, which appears to be unlikely, then JP Morgan gains an asset. So, I think my use of the word "loan" was a mistake. I could be wrong though. The deal appears quite complicated and the entire then is not out yet, but likely will be if Bear Stearns accepts the deal, which it may not BTW.