8-KExhibits & Filings

JPMORGAN CHASE & CO 8-K Report, Exhibit Filing (Jun 27, 2007)

Filed June 27, 2007For Securities:JPMJPM-PCJPM-PDJPM-PKJPM-PLJPM-PMJPM-PJAMJBVYLD

Summary

JPMorgan Chase & Co. filed a Form 8-K on June 27, 2007, primarily to disclose an associated exhibit. The key item reported is a Tax Opinion from Davis Polk & Wardwell concerning specific financial instruments. This opinion relates to 14.0% (or 27.39% per annum) Reverse Exchangeable Notes due December 31, 2007, which are linked to the performance of the least performing common stock within the Dow Jones Industrial Average, excluding JPMorgan Chase & Co. itself. For investors, this filing indicates the company is engaging in or has recently concluded arrangements involving complex structured financial products. The inclusion of a tax opinion suggests these notes have been structured to offer specific tax implications for holders, a crucial detail for potential investors assessing the overall return and risk profile of such notes. The short-term nature of the notes (maturing by year-end 2007) and their linkage to a basket of stocks highlight a strategy potentially offering higher yields but also significant market risk tied to the performance of other major companies.

Key Highlights

  • 1Filing date: June 27, 2007, reporting on events as of June 25, 2007.
  • 2Primary disclosure is a Tax Opinion from Davis Polk & Wardwell.
  • 3The tax opinion pertains to Reverse Exchangeable Notes.
  • 4These notes offer a 14.0% interest rate (equivalent to 27.39% per annum).
  • 5The notes are due on December 31, 2007.
  • 6The performance of the notes is linked to the least performing common stock in the Dow Jones Industrial Average (excluding JPM stock).
  • 7This exhibit is incorporated by reference into JPMorgan Chase & Co.'s Form S-3ASR.

Frequently Asked Questions

The primary purpose of this Form 8-K filing is to disclose an associated exhibit, which is a Tax Opinion from Davis Polk & Wardwell concerning specific structured financial products offered by JPMorgan Chase & Co.

The Reverse Exchangeable Notes have a stated interest rate of 14.0% (equivalent to 27.39% per annum), are due on December 31, 2007, and their return is linked to the performance of the least performing common stock in the Dow Jones Industrial Average, excluding JPMorgan Chase & Co. stock.

A Tax Opinion from a reputable firm like Davis Polk & Wardwell is important because it provides guidance on the tax treatment of the income and potential gains or losses associated with these complex financial instruments for investors. This can significantly impact an investor's net return.

This means that the investor's return, beyond the stated interest, is dependent on the performance of the single worst-performing stock among those included in the Dow Jones Industrial Average (excluding JPMorgan Chase & Co.). If that stock performs poorly, the overall return on the note could be negatively affected, or the principal could be at risk depending on the note's specific terms, which are not fully detailed in this 8-K.