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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.
Looks OK to me, but I have holdings that include JP Morgan. BTW, the Gov't assist was a "line of credit", not a grant.
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