Boston, MA 12/17/2013 (wallstreetpr) – If a Financial Times report is true, JPMorgan Chase & Co. (NYSE:JPM), the largest U.S. lender with market cap at $212.09 billion, is seeking to sell its global investment unit, Global Special Opportunities. Like its peers in the U.S., JPM has been trying to consolidate its operations by walking out of less-worth businesses to focus on its core business.
The bank is among the top four lenders in the U.S. that are recoiling from investments such as government debts and physical commodities. The bank is also planning exit from student lending business.
Since the financial crisis, banks are tying to invest in their stability and this means avoiding operations that could expose them to greater risks in the industry.
JPMorgan Chase & Co. (NYSE:JPM)’s Global Special Opportunities is about $2 billion worth in assets. The sale of the unit could fetch about $1 billion for the bank. The Financial Times report cites unidentified sources which named Carlyle Group LP (CG), Blackstone Group LP (BX) and KKR & Co. as among the possible bidders for the unit.
The JPM’s Global Special Opportunities is based in Hong Kong and invests in non-performing loans, private equity and distressed debts. The business unit is run by Chris Nicholas and its operations are majorly in Asia where it employs 35 people.
JPMorgan Chase & Co. (NYSE:JPM)’s CEO Jamie Dimon calls what his bank is doing to its less-worth assets “pruning” and he says that it is something that the bank will be doing all the time. The bank will be looking at its business every year what it needs, what it doesn’t need and how best it can serve its clients.
As is usual with sensitive and major deals, JPMorgan Chase & Co. (NYSE:JPM) is still mum over the offering of its global investment business and even the companies named as possible bidders are not saying anything publicly yet. Perhaps this could be so that it doesn’t hurt the ongoing talks.
