What is the main purpose of this 8-K filing?

The primary purpose of this 8-K filing is to provide exhibits related to specific debt issuances by JPMORGAN CHASE & CO. These exhibits are tax opinions from their legal counsel, Davis Polk & Wardwell, concerning two separate series of Reverse Exchangeable Notes.

What are Reverse Exchangeable Notes?

Reverse Exchangeable Notes are a type of structured financial product. Typically, they offer a high coupon payment, but the principal repayment at maturity is linked to the performance of an underlying asset, in this case, the common stock of other companies (Champion Enterprises and Motorola). If the underlying stock price falls below a certain level, the investor may receive less than the principal amount invested.

What are the key risks associated with these notes?

Investors in these notes face credit risk from JPMORGAN CHASE & CO. (as the issuer) and market risk tied to the performance of the underlying stocks (Champion Enterprises and Motorola). If the stock prices of these companies decline significantly, investors could lose a portion or all of their principal investment at maturity, despite potentially receiving periodic interest payments.

Why are tax opinions being filed?

Tax opinions are filed to provide investors with guidance on the tax treatment of the interest payments and principal repayment for these specific notes. Given the complexity of structured products, understanding the tax implications is crucial for investors.

JPMORGAN CHASE & CO 8-K SEC Disclosure

Summary

This Form 8-K filing by JPMORGAN CHASE & CO. (JPM) on June 11, 2007, primarily serves to file exhibits related to specific debt offerings. The key disclosures involve tax opinions from Davis Polk & Wardwell concerning two distinct series of Reverse Exchangeable Notes. These notes are structured with varying interest rates and maturity dates, and importantly, their value is linked to the common stock of other companies: Champion Enterprises, Inc. and Motorola, Inc. For investors, this filing indicates JPM's ongoing activity in structured products and debt issuance. The inclusion of tax opinions suggests these are complex financial instruments where tax implications are a significant consideration for potential noteholders. Investors should note that these notes carry the credit risk of JPMORGAN CHASE & CO. but their return and principal repayment are contingent on the performance of the underlying referenced stocks, introducing equity-related risk.

Key Highlights

1Filing of exhibits related to debt offerings: Reverse Exchangeable Notes.
2Disclosure of tax opinions from Davis Polk & Wardwell for two specific note issuances.
3One note series (12.50%) is due June 13, 2008, and linked to Champion Enterprises, Inc. stock.
4Another note series (3.50% coupon, 14.00% per annum equivalent) is due September 28, 2007, and linked to Motorola, Inc. stock.
5These are 'Reverse Exchangeable Notes', implying a structure where principal repayment is linked to the performance of the underlying stock.
6The filing date is June 10, 2007, with the earliest event reported as June 7, 2007.

JPMORGAN CHASE & CO 8-K Report, Exhibit Filing (Jun 11, 2007)

Summary

Key Highlights

Frequently Asked Questions