JPMorgan Chase Refrained From Loan Funding Large Takeovers Including Elon Musk's Twitter Buyout

JPMorgan Chase Refrained From Loan Funding Large Takeovers Including Elon Musk's Twitter Buyout
  • JPMorgan Chase & Co JPM said it did not provide loan backing to takeovers such as Twitter IncCitrix Systems Inc, and Nielsen Holdings PLC, which fell in value as markets turned volatile.
  • JPMorgan's Jamie Dimon sees a gloomy environment for the U.S. economy, contrasting Bank of America Corp's BAC optimistic view and making large loans to buyers (Tesla TSLA CEO Elon Musk) of Twitter, Citrix, Nielsen, and others. 
  • "There are no real leveraged loan write-downs this quarter, and that market isn't yet cleared," Mr. Dimon said on an October conference call with Wall Street analysts. "Our share of it is very small, so we're very comfortable," Dimon commented.
  • Competitors attribute JPMorgan's absence as a lender on big deals in 2022 to a diminished relationship with private-equity firms in recent years, Wall Street Journal writes.
  • JPMorgan ranks fourth among U.S. arrangers of buyout bonds and loans this year, while Bank of America is third, according to data from Dealogic. 
  • JPMorgan's global head of corporate debt, Kevin Foley, was a midlevel banker during the 2008 credit crisis when the bank struggled with deals gone wrong.
  • JPMorgan stayed back from buyout loans, citing price inflation that would last for years because of supply disruptions and wage inequality.
  • Price Action: JPM shares closed at $135.50 on Friday.
  • Photo via Wikimedia Commons

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