That bailout money that went to banks so they could provide that so-essential-we-need-it-yesterday liquidity to the market? The banks seem to think they’ve found a better use for it. Buying other banks:
Several major U.S. banks are leaning toward spending a portion of their federal rescue money on acquiring other financial firms rather than for issuing new loans, the primary purpose of the government’s $250 billion initiative to invest in banks.
J.P. Morgan Chase, BB&T, and Zions Bancorporation have all said in recent days that they are considering using some of their federal money to buy other banks.
About 10 financial institutions belonging to the Financial Services Roundtable, which represents 100 of the nation’s largest financial services firms, are also considering making acquisitions with the money, said Scott Talbott, the group’s senior vice president.
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