JPMorgan CEO sees $1 bn gain from Bear deal

[OhioChick]

Source: Reuters

13 May, 2008, 0217 hrs IST, REUTERS

NEW YORK: JPMorgan Chase & Co expects to report a $1 billion second-quarter gain related to the Bear Stearns Cos takeover, JPMorgan Chief Executive Jamie Dimon said on Monday, though some merger benefits will be less than predicted while some losses will drag on results.

Dimon also told a UBS investor conference that JPMorgan has identified positions for 40 percent of Bear's nearly 14,000 employees. To date, 75 percent of people decisions from the merger have been completed.

JPMorgan has already realized $200 million of losses reflecting its 49.5 percent ownership of Bear since April 8, Dimon said. He warned that JPMorgan expects about $200 million of further Bear losses.

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.


Read more: http://economictimes.indiatimes.com/articleshow/3034376.cms

[Cheney Killed Bambi]

1. That's $1B in profits financed by taxpayers

[Indenturedebtor]

2. No kidding

That would be like me reporting the political pandering check as earnings.

Way to go you rich parasitic bastards! :applause:

[jtrockville]

3. aka Corporate Welfare.

[barbtries]

5. thank you.

that was my first reaction, but i'm not very knowledgeable in economics. and to think i had a 3-day weekend and couldn't afford to do a thing with it because i have to make the gas in my car last til payday. i can buy banks!

[bluesbassman]

4. Great. I bet BofA is licking their chops.

The American taxpayers are going to get reamed again when Countrywide has to get bailed out. No way is BofA going to take that sinking ship with out the feds help.

[InkAddict]

6. Dimon's Folly is so much BS

Dimon also told a UBS investor conference that JPMorgan has identified positions for 40 percent of Bear's nearly (redundant) 14,000 employees.

Yeah, hear that flushing sound...

VISA USBank ReliaCards (debit) for all - w/a $3000.00 maximum daily counter or ATM withdrawal limit and $1.50 daily fee on balances remaining over 360 days. Of course, in Ohio, you can also choose to cough up your bank routing and account # to the State for direct deposit of unemployment insurance payments.