JPMorgan Takes $711 Million Writedown on Legacy Loans
April 17, 2009
By MoneyAisle
According to Bloomberg, JPMorgan Chase & Co., the largest U.S. bank by market value, wrote down $711 million in high-risk, high-yield loans made to fund buyouts, partially offsetting record first-quarter investment banking revenue of $8.3 billion.
Prices for leveraged loans held by JPMorgan declined “in line with our expectations,” said Pri de Silva, an analyst with CreditSights in New York. The loans’ values will depend on the “overall state of the economy, which is going down and that will drag prices down, and whether they will be offset by improved liquidity and demand for liquid assets.”