JPMorgan Chase Admits It Received a Multi-Billion Gift From the Fed

NationalEconomist.com ^

[drbasketball]

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 Jamie Dimon...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...

[Proud_USA_Republican]

Moral Hazard! (falls on deaf ears at the fed)

[Unknowing]

Looks like the Bald Avenger and the Chrome Crusader really know what they’re doing in this no-billionaire-left-behind economy.

[HamiltonJay]

I told folks at the time this was going on.. no one wanted to listen...

Fed is selling the country down the tubes so Billionaires won’t have their bentley’s repo’d. The great American experiment is over.

[TruthConquers]

So much for the crowd that was denying that this was in anyway a sweetheart deal for JPMorgan. I wonder how long this will be sweet? Do they get to throw away all those debt multiplying derivatives?

[pnh102]

So when do we as taxpayers get our shares of JPMorganChase?

[GovernmentShrinker]

Bear Stearns committed suicide. The only way to save millions of investors — many having no dealings with Bear Stearns — from getting royally screwed to the tune of many many many billions of dollars, was to quickly announce a deal to sell it, BEFORE the Asian markets opened on the morning of Marhc 17. There were no other takers. I’m not interested in hearing any whining from any party about JPM having gotten a sweetheart deal from the Fed, unless that party can provide solid evidence that it made a viable competing offer to Bear and the Fed before noon on March 16.

[johnnycap]

I think you are right. As a matter of fact, if Lehman Brothers weren’t up to the same balance sheet mischief, they should have been first suitor. They earned their pole position in the Long Term Capital deal. However, my hunch is that when the weekend meeting happened, Dick Fuld reached into his pants pockets and all he could pull out was rabbit ears. Then, quietly asked for similar credit in order for him to back out of his own derivatives mess.

[Southerngl]

Fed is selling the country down the tubes so Billionaires won’t have their bentley’s repo’d. The great American experiment is over.

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This statement reminds me of when England experimented with an elected government back in the 1600 or 1700’s (?) and finally gave up with corruption dictating themselves rich and went back to a monarchy.