JPM’s Bear Stearns, WaMu Deals Will Pay Off — Eventually

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Cornelius Hurley, School of Law, Center for Finance, Law & Policy

JPMorgan Chase’s acquisitions of Bear Stearns andWashington Mutual Enhanced Coverage LinkingWashington Mutual will ultimately be viewed like training for a marathon – worth it in the end, but a whole lot more work and pain than ever expected…

Expert quote:

“These deals are often viewed as if JPMorgan did some huge favor for the nation – I don’t buy that. They were making a shrewd business deal that was virtually guaranteed against losses by taxpayers at the time. Maybe they are paying some back in penalties, but they are still good deals for JPMorgan. They’d do it again, but they’d lawyer up for sure – put in stronger indemnification agreements, [or] maybe acquire it in a separate subsidiary.”

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