JPMorgan CEO sees $1 bn gain from Bear deal [View All]

[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