Monday, March 9, 2009

JPMorgan Chase to Increase India Outsourcing 25%

JPM received $25 Billion in TARP bailout funds on top of the backstop on the assets they got in the Bear Stearns deal.
This may be smart operationally but politically it is dumber than the auto execs flying to Washington for their handout.

From BusinessWeek:
America's second-largest bank plans to spend $400 million on work outsourced to India to streamline its IT operations...MORE

From The Raw Story:
Rather than using federal bailout money to reinvigorate lending to consumers, some banks that received funds from TARP have spent it on questionable items that have done little to improve the health of the country’s financial sector but have certainly helped out foreign economies such as Dubai and China.

For instance, Citigroup Inc, which received $50 billion in Troubled Asset Relief Program funds, made an $8 billion December loan, not to an American entity, but to a Dubai public sector company, according to a newly released Monday memo by Rep. Dennis Kucinich (D-OH), chairman of the House Domestic Policy Subcommittee.

In mid- November, Bank of America spent $7 billion investing in the China Construction Bank Corporation. Bank of America received $25 billion in TARP funds.

J.P. Morgan Treasury Services spent $1 billion investing in cash management and trade finacie solutions in India also in November. J.P Morgan Chase & Co. received $25 billion in TARP funds....MORE
Folks are not happy. A crowd (8000 in Fullerton) in California chanted "Head on a stick" while protesting against Arnold Schwarzenegger this weekend. And these were conservatives who had probably never protested in public before!
It is getting ugly. Sort of like watching Baptists dance.