http://blogs.reuters.com/reuters-dealzone/2008/04/17/jpmorgan-did-i-forget-to-mention-were-raising-6-billion/ Behind the deals and deal-makers Mon, 09 Nov 2009 12:44:59 +0000 http://wordpress.org/?v=2.6.2 http://blogs.reuters.com/reuters-dealzone/2008/04/17/jpmorgan-did-i-forget-to-mention-were-raising-6-billion/#comment-333799 NewsVisual Thu, 17 Apr 2008 19:40:33 +0000 http://blogs.reuters.com/reuters-dealzone/2008/04/17/jpmorgan-did-i-forget-to-mention-were-raising-6-billion/#comment-333799 In an effort to shore up its balance sheets after billions were siphoned off from bad mortgages, JPMorgan Chase & Co will raise “$6 billion in its biggest offering of perpetual preferred stock”, according to a report by Bloomberg News. "New York-based JPMorgan, the third-biggest bank in the U.S., has posted about $10 billion of asset writedowns and credit losses since the start of the subprime-mortgage turmoil early last year," the Bloomberg article reported. Regulatory law requires all banks to maintain capital reserves at a certain level in order to remain solvent if borrowers default on their loans. The JPMorgan Board of Directors could have decided that by raising the $6 billion in preferred stock and recapitalizing the banks now that it would help to keep the financial markets from becoming too panicky over recent losses. The markets are likely to greet the Directors’ decision as a responsible and positive one. In an effort to shore up its balance sheets after billions were siphoned off from bad mortgages, JPMorgan Chase & Co will raise “$6 billion in its biggest offering of perpetual preferred stock”, according to a report by Bloomberg News. “New York-based JPMorgan, the third-biggest bank in the U.S., has posted about $10 billion of asset writedowns and credit losses since the start of the subprime-mortgage turmoil early last year,” the Bloomberg article reported. Regulatory law requires all banks to maintain capital reserves at a certain level in order to remain solvent if borrowers default on their loans. The JPMorgan Board of Directors could have decided that by raising the $6 billion in preferred stock and recapitalizing the banks now that it would help to keep the financial markets from becoming too panicky over recent losses. The markets are likely to greet the Directors’ decision as a responsible and positive one.

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