Thursday, May 28, 2009
JP Morgan Stands To Reap Windfall Of $29B
Federal Deposit Insurance Corp. would not have imagined last year that J.P. Morgan Chase (JPM) will make a windfall from the purchase of troubled Washington Mutual Inc (WaMu). However, thanks to a new accounting rule, JPM is set to reap $29 billion in income on the same toxic sub-prime mortgages that threatened to topple WaMu.
The new purchase-accounting rule offers the banks with accretable yield - the difference between the price of the loans on the banks' balance sheets and the cash flow they are expected to create...
BBR: JP Morgan Stands To Reap Windfall Of $29b
The new purchase-accounting rule offers the banks with accretable yield - the difference between the price of the loans on the banks' balance sheets and the cash flow they are expected to create...
BBR: JP Morgan Stands To Reap Windfall Of $29b
Permalink posted by markw @ 6:00 AM 
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