Morgan to Fire 7,000 Bear Stearns Employees
J.P. Morgan just announced they will be cutting over 7,000 Bear Stearns (half of their 14,000 total employees), despite getting an artificially low interest loan from the Fed. (There are no other news sources reporting this at this point so I can’t link to anything, sorry).
Maybe it’s just me but shouldn’t one of the conditions of the Fed’s loan have been that they freeze any firing? What’s the point of our government subsidizing the collapse of the banks if it just means people losing their jobs? The answer, of course, is simple. This administration cares about banks and corporations, not the citizens. As the Treasury Secretary noted, the bailout was an emergency move done to “save” the financial institutions; an unprecedented maneuver:
We’re very aware of moral hazard. But our primary concern right now — my primary concern — is the stability of our financial system.
Okay, so they bail out the banks. That makes sense. But the employees? Why force them to bear this burden? It couldn’t have cost too much more to provide additional funding to keep the employees for a certain period of time, six months perhaps? Nope.
Still unanswered is how many of the higher up executives — who ostensibly should be held responsible for this collapse — will lose their jobs.