Goldman and JP Morgan raked in the dough!

Did it surprise anyone? Surprise anyone that Goldman Sachs and JP Morgan, heaped in massive profits in their last quarter?

I don't have the figures to quote directly- to lazy to go an google the exact amount- but it is in the record books and the bank sheets and the pockets of a lucky few.

Eff you, Washington, we can make our own money thank you very much.

To be fair, there are reasons to why they were able to make their own money.

For one, Goldman Sachs, at least, did not follow the same management and investment style Lehman Bros and Bear Stearn's did. In fact, they ran a very conservative balance sheet, of mixed assets that were able to offset themselves from the subprime mortgage meltdown.

JP, to some extent, played it safe and took affirmative action to make sure its bank sheets were clean. Perhaps JP was a survivor by accident? When every one else was hogging in on the subprime CDS trades, they were the ones left out of the business.

The second reason, is that they are two of the very few houses that are still in fully functioning operation, without government bailout money. For the mere fact that they were able to stand on their own and take government funds as a matter of dictate from DC, over that of them having to, allowed their reputation to be saved and do business the way it is supposed to.

Goldman and JP consolidated and took the pickings from the carcases of bank houses that hit the floor, like Lehman, took the best parts, and cut the staff of those who they didn't need. They had their pick of the litter as to which banks and businesses they would buy and allow to consolidate.

Goldman, also, at least, has high ranking friends in DC, who could have foretold the eminent danger ahead and send signals to their house, that this is what you need to do to stay in business. Joe Louis didn't get the memo when he bought Bear Stearn's, but the staff at Goldman- with their ex-chief Hank Paulson as Treasury and immediate past Secretary- did.

Jamie Dimon at JP Morgan, is just a smart and crafty dude and messaged his bank's position, very carefully. Kudoes to him.

I love a good story. We can hopefully start the next week better. So much for stimulus.