Times have changed. They can't raise the money buy selling bonds anymore.

New Jersey has selected JPMorgan Chase & Co. to provide it as much as $2 billion in a line of credit for use in July and August, as the recession pushes state coffers to the point where its surpluses will be nearly emptied by month's end.

Department of the Treasury spokesman Tom Vincz said the state projects it will spend $18.2 million on both the credit line and the typical short-term borrowing set for late summer -- which, if holds true, would be less than what New Jersey spent to borrow $1.8 billion last year.

Eleven bids were submitted for the contract. Citigroup Global Markets Inc. finished second.


"The bidder indicated that it would be in position to use their own balance sheet to fully fund the (transaction). The second-rated bidder would offer to investors. It was essentially the only firm that indicated it had the capacity to do that," Vincz said. "This gave a level of confidence to the state that was preferable."

JPMorgan has received $25 billion from the U.S. Treasury Department effort to (bail out Wall Street firms determined by revolving door insiders to be TBTF).
Comment in red is obviously mine, I just couldn't post the end of that sentence, i.e. the party line.