Monday, June 1, 2009
JPMorgan Chase & Co. plans to raise $5 billion through a common stock offering as it seeks to repay the $25 billion that the bank was awarded in the government's troubled asset relief program.
New York-based JPMorgan Chase announced the capital-raising effort Monday. It was among a group of large banks to receive money from the TARP program under the series of government bailouts. The program requires banks to demonstrate they can raise money in capital markets.
JPMorgan Chase says it believes that once it raises the $5 billion, it will have satisfied government criteria for fully redeeming TARP's preferred capital. The bank says it expects to achieve that goal before the end of June.
The bank is among several that have recently turned to investors to shore up their capital.