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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: MulhollandDrive who wrote (150589)	9/26/2008 6:51:01 AM
From: XoFruitCake	Respond to of 306849

"you have to think this deal was made on the complete assumption that the paulson plan was a done deal" I read the JPM presentation 3 or 4 times tonight. Anyway you cut it JPM get either a good deal or very good deal (but not out of the world deal). If their loss assumption and 31B write off is enough to cover future write off, JPM is getting a very good deal. If not, then they are going to get a good deal. Something get loss in the hoopla is that JPM need to sell stock and raise 8B (per their presentation).. I don't know any other banks can do that in this market.. Also missing in the hoopla is that FDIC went through a bidding process on Wednesday before picking JPM as the suiter (per WSJ). Raising capital in a tough market can be one of the road block for other banks that was in the running to bid for WM. Hence JPM get it for 1.9B. The Treasury deal is really not helping banks like JPM or WFC. It is mainly for the weaker banks.. JPM can raise capital if they need it.. The Treasury deal is trying to replace dead asset in the weak banks with cash so that market can decide to recap the bank or not.. For JPM and WFC, it there is no deal, they will be the only bank standing (BAC may have problem, their tangible capital ratio is very low...so they are leverage up and betting on the come now). files.shareholder.com