Are the Banks Double Dipping The Taxpayer? (JPM, BAC)

Not only are banks getting bailed out left and right by the federal government, but they are making tons of cash selling the massive amounts of government-backed debt being used to prop up the system.

The FT is reporting JPMorgan Chase (NYSE: JPM) earned nearly $130 million from selling 51 government-backed bonds, while Bank of America (NYSE: BAC) made $105 million in fees.

The FT said banks earned more than $900 million in less than four months selling government-guaranteed bank debt to investors.

JPMorgan shared $123 million in fees with underwriters for raising $30 billion in debt for itself, the report said. But while the banks are making fees from managing these bond issues, they also have to pay a fee to the government for the use of the guarantee.

Link to FT.com Article

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