[Jimmy Valentine]

My guess is that JPM/Chase will come home a very big winner on this. After all, they bought a temporarily illiquid securities portfolio that is backed by performing loans (for the most part). I thinkthat over the next thre to five years they will have some big paydays.

Old J. Pierpont Morgan is smiling somewhere.

[Moonman62]

My guess is that JPM/Chase will come home a very big winner on this. After all, they bought a temporarily illiquid securities portfolio that is backed by performing loans (for the most part). I thinkthat over the next thre to five years they will have some big paydays.

I think you're right and that means the Fed mad a good move too.

[Mr. Jeeves]

My guess is that JPM/Chase will come home a very big winner on this. After all, they bought a temporarily illiquid securities portfolio that is backed by performing loans (for the most part).

Maybe. But Bear Stearns was just the first firm to have their stock value forcibly "marked to market" ($170 to $2) based on their portfolio, and Mish's site last week had an example of a 8-month-old AAA-rated WaMu Alt-A tranche that is already showing a 15% default rate. Alt-A is where all of the "liars loans" ended up, and those securities really haven't started unraveling yet. JPM might in fact win out in the long run, but it could take many years - thus the fire sale price they paid.