Thoughts rolling around in my head. Please excuse the random poorly written narrative. As Ms. Piggy used to say "use your imaginAsheeyun"......
What if Bank of America was "rescued"( a la rumors last week of a takeover) by JPM, who seems to be the healthiest US bank (on paper, disregarding derivatives exposure) allowing JPM to accept Fed funds(bailout) for it's altruistic(sarc) rescue of BAC's MBS ?
By absorbing BAC's balance sheet, JPM, who some contend are dying a slow death due to short Pm exposure as well as the European bank contagion will have a nice cover story for taking taxpayer money.
"Look at what this nice bank did, they took over these bad mortgages." Coupled with a solution from the white house to refi all these mortgages into Freddie/Fannie MBS will provide a cover story that paints a picture that the housing crisis is finally over......JPM accepts taxpayer cash via a Fannie/Freddie purchase of their MBS book to ease the pain of their nice guy action that helps them hide the losses from derivatives exposure and maintain their healthy aura without the headlines of another "Banker Bailout!".
Granted I'm not a politician, a banker or a criminal but seems to me this dog might hunt.