Boston, MA 07/28/2014 (wallstreetpr) – Reports indicate that JPMorgan Chase & Co. (NYSE:JPM) has faced regulators to answer claims that its advisors usually guide clients in buying the firm’s financial products. The Wall Street Journal reports that, as a result, of the questioning, the bank has already sharpened its disclosures to clients. One of JPM’s regulators, the office of the Comptroller of the currency, is also reported to have held discussions on claims of conflicts of interest.
JPM Maintains its Transparency
JPMorgan’s spokesman, Darin Oduyoye, has already in a statement reiterated that the bank has always remained transparent in its daily operations. A conflict of interest arises in this case because if brokers and advisers push clients to buy in-house brand of financial product, the bank will always end up benefiting at the expense of the clients. Financial institutions are required to provide impartial advice in this case, for clients to make their own independent decision.
JPMorgan debt Portfolio up for Sale
Sankatty Advisers is ready to pay up to $1 billion with a view of acquiring JPMorgan’s debt portfolio. The potential sale essentially outlines the extent in which shadow banks are absorbing operations that have been under the arms of large commercial banks. Increased pressure from regulators to raise capital for meeting Basel requirements has forced some of the banks to sell some of their business portfolio in this segments.
Sankatty Beats Competition
Sankatty is reported to have won a heated auction of JPMorgan Chase & Co. (NYSE:JPM)’s Global Special Opportunities Group Portfolio, made of junior loans in North America and Europe. Investment funds such as Blackstone’s GSO arm and KKR are thought to have been in the race of trying to acquire the arm. The unit is based in Hong Kong, with staff in all regions and an aggregate value of approximately $1.3 billion.
Sankatty has approximately $24 billion under management and is reportedly considering retaining most of the employees that have foreseen the growth of the portfolio.
