Why Did JPMorgan Chase Get a Bailout?
In 2008, excessive risk-taking on the part of numerous large banks combined with a housing bubble that U.S. banking groups treated as though it’d never stop expanding. This created a recipe for financial disaster: That housing bubble burst, plunging the world into a complete financial crisis. The U.S. government began bailing out banks to salvage an economy that was quickly sliding into a massive recession.
JPMorgan Chase was one bank that received a bailout in 2008 following sales of risky mortgage-backed securities prior to the financial crisis. However, it was just one of many banks to take part in these practices, and the treasury department saved additional banks with a $700 billion bailout following the financial crash. Learn more about why JPMorgan Chase and other institutions received enough financial assistance to prevent them from total collapse.