JPMorgan says banks may be making 'bad loans' as LBOs boom

April 14, 2015 11:11 PM

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NEW YORK, April 14 (Reuters) - JPMorgan Chase & Co is concerned about loans that finance some leveraged buyouts, and is scaling back from what is a booming area, even as its overall loan portfolio grows, a top executive said in an interview.

Loans that fund smaller leveraged buyouts, where companies often do not have the size or financial resources to weather a business downturn, look particularly hazardous, Doug Petno, chief executive of commercial banking at JPMorgan, told Reuters.

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