JP Morgan Chase & Co Helps California

JPMorgan Chase & Co has just agreed to provide the State of California a short-term loan of $1.5 billion, which will allow the state to end its IOU program. This is the first time in almost 20 years that California was forced to issue IOUs. If you live in California, you have probably noticed Chase Banks popping up everywhere, and most likely, have heard the endless commercials on every media outlet letting you know that Chase bank is now in California. They have made a grand effort to appeal to the citizens of this state, and seem to be continuing to do so by helping the whole state out. This seems like it is a win-win situation for JPMorgan Chase & Co. Not only are they being seen in a bright light by Californian’s, they are also getting on the good side of the State government, which happens to be one of the largest bond issuers in the nation. This seems like a very smart investment on this company’s behalf. And California will now be able to repay government vendors and creditors on September 4th, instead of the maturity date on the IOUs of October 2nd. Seems like good news all around. Now let’s see how it plays out.

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