JPMorgan Admits Receiving Multi-Billion Dollar Gift From the Fed

The controversial deal orchestrated by the Federal Reserve that pushed Bear Stearns into the hands of JPMorgan Chase, at the height of the sub-prime crisis, will turn into billions of dollars in gains for for JPMorgan Chase. The deal will result in an immediate second quarter gain of $1 billion for JPMorgan Chase, admitted Chairman and Chief Executive Officer Jamie Dimon. The projected $1 billion gain reflects the addition of Bear Stearns capital, offset by roughly $9 billion of losses reflecting asset sales, purchase accounting, restructuring, litigation costs and Bear’s second-quarter losses, Dimon told a UBS investor conference.
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Posted by Editor at May 14, 2008 05:22 AM