JP Morgan Stands To Reap Windfall Of $29B

Federal Deposit Insurance Corp. would not have imagined last year that J.P. Morgan Chase (JPM) will make a windfall from the purchase of troubled Washington Mutual Inc (WaMu). However, thanks to a new accounting rule, JPM is set to reap $29 billion in income on the same toxic sub-prime mortgages that threatened to topple WaMu.

The new purchase-accounting rule offers the banks with accretable yield - the difference between the price of the loans on the banks' balance sheets and the cash flow they are expected to create...

BBR: JP Morgan Stands To Reap Windfall Of $29b