see this The deal will result in an immediate second quarter gain of $1 billion for JPMorgan Chase, admitted http://livelifepursuehappy.com/youtube.com/embed/9nh9GwWDTNA?wc-ajax=get_refreshed_fragments Chairman and Chief Executive Officer Jamie Dimon.
(Guess who paid or will pay for this gift? – The Infinite Unknown)
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.
In the longer term, after some short-term losses, Dimon said Bear’s investment bank would generate between $800 million and $1.13 billion of earnings annually for JPMorgan.
Thus, a deal that could not have been done without the Federal Reserve providing a $30 billion dollar line of credit for JPMorgan’s takeover of Bears Stearns, now, in just weeks after the deal, will mean short-term gains of a billion dollars for JPMorgan Chase and down the road a billion annually for JP Morgan Chase.
May 12, 2008
Source: National Economist