JPMorgan Raises $10 Billion in Stock Sale After WaMu

JPMorgan Raises $10 Billion in Stock Sale After WaMu

www.bloomberg.com

JPMorgan Chase & Co. raised $10 billion in a stock sale to cover writedowns and losses after taking on deposits and branches of Washington Mutual Inc., the biggest U.S. savings and loan, for $1.9 billion.

The shares were sold for $40.50, or 6.8 percent less than yesterday's closing price of $43.46. New York-based JPMorgan sold 246.9 million shares, according to a statement today.

JPMorgan, now the largest U.S. bank by deposits, said the capital infusion would offset an estimated $8 billion of credit provisions, writedowns and losses in the third quarter. The WaMu acquisition will force JPMorgan to set aside an additional $2 billion to cover bad loans on the failed thrift's books. Chief Executive Officer Jamie Dimon said the deal would boost earnings per share by 50 cents in 2009.

``We want to just maintain the same strong balance sheet and capital ratios going forward as we have in the past,'' Dimon said on a conference call last night.

(visit the link for the full news article)

Well, blow me over with a feather.

After buying up WaMu for a ridiculous $1.9 billion in the Great American Firesale, JPMorgan Chase rakes in $10 billion from the markets the next day, to pay for its prize, and to put the cherry on top.

The money quote:

The bank said it may sell another 37 million shares to cover excess demand.

Sweet. Sure pays to be a bankster.

Oh, and did I mention, they are a FED member bank?

www.bloomberg.com
(visit the link for the full news article)

reply to post by gottago


I respectfully disagree.... they are not a "FED member" bank. They are part OWNERS of the FED. Just like the rest of the crime families that bought our political system in 1913.