Comments on: JP Morgan Chase Pimping GM – Chrysler Merger http://www.thetruthaboutcars.com/jp-morgan-chase-pimping-gm-chrysler-merger/ The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Sun, 22 Nov 2009 07:54:01 -0500 http://wordpress.org/?v=2.8.6 hourly 1 By: Pch101 http://www.thetruthaboutcars.com/jp-morgan-chase-pimping-gm-chrysler-merger/comment-page-1/#comment-873061 Pch101 Wed, 22 Oct 2008 15:10:29 +0000 http://www.thetruthaboutcars.com/?p=118541#comment-873061 It's important to remember that securities analysts are really just an extension of the marketing department. Their job is to sell a story, even though they are allegedly supposed to provide objective advice. If a guy who worked for JPM were to appear on television and speak poorly of the merger, that guy would be fired immediately, even if his position was well supported. JPM has real money on the line, and it is in their best interests to make this option look appealing. It’s important to remember that securities analysts are really just an extension of the marketing department. Their job is to sell a story, even though they are allegedly supposed to provide objective advice.

If a guy who worked for JPM were to appear on television and speak poorly of the merger, that guy would be fired immediately, even if his position was well supported. JPM has real money on the line, and it is in their best interests to make this option look appealing.

]]> By: OldandSlow http://www.thetruthaboutcars.com/jp-morgan-chase-pimping-gm-chrysler-merger/comment-page-1/#comment-872261 OldandSlow Wed, 22 Oct 2008 12:12:44 +0000 http://www.thetruthaboutcars.com/?p=118541#comment-872261 The Bloomberg video mentions a government role in joining the two. This is Senator Carl Levin's part of the deal. JP Morgan Chase loaned Cerberus approximately 6 billion dollars to acquire Chrysler. Some of which was probably used to shore up the 51% share that Cerberus has in GMAC. JPM Chase was unable to repackage the loans as CDO's before the credit meltdown. Therefore, the loan portfolio is still on their books and probably as an under performing asset. Should Cerberus pull the plug on Chrysler, it will be write-down city. Citigroup is the other Cerberus player. Naturally, both JP Morgan Chase and Citigroup are advising Cerberus-Chrysler in the merger negotiations. The Bloomberg video mentions a government role in joining the two. This is Senator Carl Levin’s part of the deal.

JP Morgan Chase loaned Cerberus approximately 6 billion dollars to acquire Chrysler. Some of which was probably used to shore up the 51% share that Cerberus has in GMAC.

JPM Chase was unable to repackage the loans as CDO’s before the credit meltdown. Therefore, the loan portfolio is still on their books and probably as an under performing asset. Should Cerberus pull the plug on Chrysler, it will be write-down city.

Citigroup is the other Cerberus player. Naturally, both JP Morgan Chase and Citigroup are advising Cerberus-Chrysler in the merger negotiations.

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