TARP Spin Spun Out of Control, 19,000 Left Jobless

Pharmaceutical giant Pfizer announced today that it is acquiring drug maker Wyeth in a gargantuan deal valued at over $68 billion dollars.

Pfizer CEO Jeff Kindler didn’t hesitate to use the announced acquisition of Wyeth as an opportunity to champion the role of banks involved in the deal:

“It’s good to see that banks are doing what banks are supposed to be doing,” said Pfizer CEO Jeff Kindler on a conference call with reporters Monday. Read more on the Pfizer/Wyeth deal. J.P. Morgan Chase, Bank of America, Citigroup and Goldman Sachs have all received government aid under last fall’s TARP program.”

I actually believe a successful transaction of this size during a period of economic retraction is a good thing because it reflects some level of optimism in the long term economic prospects for the country. However, it will be interesting to observe Congress’ reaction to this deal in light of the loss of 19,000 jobs resulting from the combination of the two companies.

Some bank analysts are asking the obvious:

‘We also wonder whether some of the banks who appear to have taken money under the TARP will than turn around and loan that money to finance a deal that will obviously — to us — lead to job losses — something we assume the authors of the legislation would be vehemently against.’

What will Senator Countrywide (Dodd) and Representative FNMA (Frank) have to say about this?

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