June 19, 2009 / 6:54 PM / 10 years ago

JPMorgan expects $1.1 billion Q2 charge after TARP

People walk past the JPMorgan Chase & Co building in New York March 17, 2008. REUTERS/Chip East

NEW YORK (Reuters) - JPMorgan Chase & Co said it expects to record a $1.1 billion charge in its second-quarter results after returning $25 billion in taxpayer funds to the U.S. government.

The charge, relating to the early repayment of the government’s investment, reduces second-quarter results by about 27 cents a share, the bank said in a regulatory filing on Friday.

JPMorgan also said it has paid more than $795 million in dividends on the preferred stock it issued to the government in the fall, as part of the government’s Troubled Asset Relief Program.

Ten large banks, including JPMorgan, repaid more than $68 billion to the TARP on Wednesday, in a bid to extract themselves from government restrictions on pay for top executives.

Goldman Sachs Group said it paid a dividend of $425 million, reducing second-quarter earnings by about 77 cents a share, the bank said earlier in the week. Morgan Stanley said it expects a $892 million charge in the second quarter relating to the early repayment of the government investment.

Both Goldman and Morgan Stanley received $10 billion from the bank bailout fund.

Reporting by Elinor Comlay; Editing by Richard Chang

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