* Says did Fed a favor buying Bear Stearns
* New regulations will cost more than $1 billion annually
(Adds comments from Dimon)
WASHINGTON, Oct 10 (Reuters) - JPMorgan Chase & CoChief Executive Jamie Dimon said his company has lost up to $10billion as a result of the government asking him to buyteetering Wall Street firm Bear Stearns during the financialcrisis.
"I'm going to say we've lost $5 billion to $10 billion onvarious things related to Bear Stearns now. And yes, I put it inthe unfair category," Dimon said, speaking at a Council onForeign Relations event.
Dimon said the losses come from litigation and writedowns,among other expenses. JPMorgan reports third-quarter earnings onFriday.
Last week, JPMorgan was hit with a fresh civil lawsuit fromthe New York's attorney general, seeking to hold the bankaccountable for allegations that Bear Stearns deceived investorsbuying mortgage-backed securities.
In response to a question on Wednesday about the lawsuit,Dimon said he needed to set the record straight and emphaticallysaid JPMorgan did the Federal Reserve "a favor" by buying BearStearns in early 2008.
He told a senior regulator at the time of the deal, "Pleasetake into consideration when you want to come after us down theroad for something that Bear Stearns did, that JPMorgan wasasked to do this by the federal government," Dimon said.
Dimon said it is a "real close" call about whether he woulddo the deal again. And, the government's appetite to go afterJPMorgan for Bear Stearns' activity could have a chillingeffect, he said.
"I'm a big boy. I'll survive...But I think the governmentshould think twice before they punish business every single timethings go wrong."
During the wide-ranging discussion, Dimon also touched onfinancial reforms and the firm's recent multibillion-dollartrading loss.
JPMorgan could see more than $1 billion in annual overheadcosts from new international and domestic financial regulations,including the Basel III capital standards, he said
Dimon criticized regulators for pushing out contradictoryand overlapping regulations.
He also assigned himself personal responsibility for notrealizing that a risky hedging strategy in the firm's Londonoffice could warp into a trading loss that has reached at least$5.8 billion.
"I should have caught it...I didn't."
He said the trading loss was "really intensely stupid" and"it's kind of embarassing personally."
(Reporting By Sarah N. Lynch, Kim Dixon, and Karey Wutkowski inWashington; Editing by Gerald E. McCormick and Leslie Gevirtz)
Keywords: JPMORGAN DIMON/BEARSTEARNS