April 13, 2008 – 8:56 pm


After posting full year 2007 results which were remarkably silent of the sounds of subprime grumblings about the only thing Barclay’s can hear is the sound of JP Morgan rushing past.

With Bear blood on the breath JP Morgan surpassed Britain’s third-biggest bank as the the top underwriter of debt issued by Fannie Mae and Freddie Mac. It comes as no surprise that JP Morgan should pass even the almighty Goldman Sachs in any meaningful metric since The Fed broke the law to put Bear Stearns firmly in the grasp of Morgan:

Volcker: We’ve seen the Federal Reserve take more extreme measures in some respects than any that have been taken in the past to deal with a financial crisis, which raises some real questions about not only for the Federal Reserve and its authorities, but for the structure of the financial system…

You can bet this was just the first of many of these slime-ball Fed brokered deals and it appears that the Fed’s anointed one will be there to gobble up the scraps of the next one to fall.

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