“Regulatory pressures are pushing many of the biggest banks to pass on financing lucrative deals, as Washington targets excessive borrowing.”
“Bank of America Corp. , Citigroup Inc. and J.P. Morgan Chase & Co. are among lenders that have in recent months decided against financing some corporate takeovers partly out of concern the deals will run afoul of new guidelines. Those guidelines are designed to keep banks away from deals regulators feel are too laden with debt.”
“Starting late last summer, the Office of the Comptroller of the Currency and the Federal Reserve sent letters to about a dozen big banks saying they need to comply with the guidance—regulators’ latest effort to reduce risk in the banking industry following the financial crisis.”
Read full Wall Street Journal article here.