JPMorgan Sees Gain of About $8 Billion From Visa Exchange Offer

(Bloomberg) -- JPMorgan Chase & Co. said it expects to book an $8 billion accounting gain after completing its part of a deal with Visa Inc. letting big banks restructure their stakes in the payments giant.

Most Read from Bloomberg

Israel Says a Cease-Fire Plan Backed by Hamas Falls Short
Jack Dorsey Leaves Bluesky Board, Calls X ‘Freedom Technology’
At $2 Million Per Minute, Treasuries Mint Cash Like Never Before
Ex-Trump Controller Says Cohen Repaid From Personal Account
S&P 500 Extends Gains in Final Minutes of Trading: Markets Wrap

The plan, announced last year, allowed JPMorgan to tender 37.2 million shares of Class B-1 common stock in Visa in exchange for a combination of Class B-2 common stock and Class C common stock, the bank said Monday in a filing.

Visa said in September that it was working to amend a share structure implemented before its 2008 initial public offering. The unique structure — with three share classes — was designed to ensure that banks that owned Visa before the IPO would still be on the hook to cover costs arising from the firm’s long-running litigation with major US merchants, including Walmart Inc. and Target Corp.

JPMorgan said it plans to donate about $1 billion of Class C common stock to the JPMorgan Chase Foundation, prefunding its contributions to the institution for the next several years. The New York-based bank will book that as a non-compensation expense, according to the filing.

Read More: Visa Takes First Step to Let Big Banks Sell $96 Billion of Stock

Visa said in a statement earlier Monday that it has accepted 240,677,470 shares of Class B‑1 common stock tendered in the exchange offer.