April 17, 2008 – 5:47 am

It stinks like dead fish under the summer sun down in JP Morgan-ville. Just hours after JPMorgan CEO Jamie Dimon said that the credit mess was “working itself out”, the bank went on the sly to collect up six billion of the biggest fat ones hoping no one would notice:

JPMorgan Chase & Co., hours after saying the credit-market crisis is almost over, made plans to raise $6 billion in its biggest offering of perpetual preferred stock, according to data compiled by Bloomberg.

Biggest on record, at 7.9% no less? Nice to see the worst is over with:

A yield of 7.9% over 10 years is expensive capital indeed for a bank which is (a) profitable, (b) currently well capitalized, and (c) doesn’t have an obvious stock of loans needing to be written down.

The scam and stench of it reek all the way up and down Wall Street, but maybe Jamie Dimon just forgot to mention this minor detail it at the earnings release:

“I can’t imagine that a $6 billion capital raise would just have slipped the minds of the execs [at JPMorgan],” said one source, who asked not to be named. “I really don’t know what to say.”

I know what to say: “scam”!

  1. 3 Responses to “Something Stinks in JP Morgan-ville”

  2. Chase has been able to hide losses until now. I would suggest that the main reason why they took on Bears was to hide future losses in Bear’s financials. Not only can they blame heavy losses on them, but the Feds will be picking up anything over a billion if the terms of the buyout remain.

    Taking Enron accounting to the Nth degree! If it walks like a duck, looks like a duck, flies like a duck….shoot it!

    By Brian Hall on Apr 21, 2008

  1. 2 Trackback(s)

  2. Apr 17, 2008: Bank-Implode! » JP Morgan Chase - $8.8B
  3. Apr 23, 2008: Bank-Implode! » Frenzy

Post a Comment