Will any bank actually sell assets into Tim Geithner’s Public-Private Partnership?
Speaking on the company’s just-concluded conference call, JP Morgan (JPM) CEO Jamie Dimon downplayed the PPIP, saying the bank had nothing to sell into it, and that it certainly had no interest in partnering with the government as a buyer.
What’s more, he said, he didn’t consider the PPIP to be that big of a deal, suggesting that it’s just one small piece of what Treasury is doing to prop up the system.
Remember, this is coming from the bank that has 10% of all mortgages. They’re saying they have nothing to sell and that toxic asset prices aren’t the problem.
Why is it not a big deal in his view? Dimon “doesn’t think toxic assets are the problem,” especially since banks are just 25% of the system — hedge funds, insurance companies, etc. (the so-called shadow banking system) is what makes up the rest.