Bloomberg News reports that JPMorgan Chase & Co. (NYSE: JPM) will take a $1.4 billion charge for leveraged buy out (LBO) loans gone sour. The good news is that the charge represents only 3.4% of its LBO loans outstanding.
Interestingly enough, relative exposure to LBO loans does not seem to correlate with loss of stock market value in 2007. Here's the list of the eight biggest LBO lenders ranked by their LBO loans coupled with the percent decline in their stock market value since their 2007 highs (excluding Deutsche Bank and Credit Suisse):
- JPMorgan: $40.76 billion, -11.5%
- The Goldman Sachs Group, Inc. (NYSE: GS): $31.88 billion, -25%
- Deutsche Bank : $27.27 billion
- Credit Suisse: $27.16 billion
- Lehman Brothers Holdings, Inc. (NYSE: LEH): $21.73 billion, -32%
- Morgan Stanley (NYSE: MS): $20.08 billion, -30%
- Bank of America Corp. (NYSE: BAC): $17.84 billion, -4%
- Merrill Lynch & Co. (NYSE: MER): $16.12 billion, -22%
Why is gold making a new high, trading at $1,118.00 per ounce?
Chasing Value: Ten stocks for 2010 -- Part 1 
Closing Bell: A six-day rally (AIG, REGN, M, MOT, PALM, RIMM)
