JP Morgan Chase & Co (JPM)

[BullNBear52]

Did you read JPM's 10Qs. JPM has had to reserve to cover $74.8B against the bad loans they acquired as a result of the Wamu purchase. If JPM had not bought the bank the taxpayers would have eaten that expense.

Purchased credit-impaired loans(a)
(in billions)

Total end-of-period loans owned $ 74.8

a) PCI loans represent loans acquired in the Washington Mutual transaction for which a deterioration in credit quality occurred between the origination date and JPMorgan Chase’s acquisition date. These loans were initially recorded at fair value and accrete interest income over the estimated lives of the underlying loans as long as cash flows are reasonably estimable, even if the underlying loans are contractually past due.

http://www.sec.gov/Archives/edgar/data/19617/000095012310102689/y86142e10vq.htm