JPMorgan Chase & Co has teamed up with unregulated lenders to underwrite a highly leveraged takeover financing for the acquisition of business software maker Tibco Software Inc, which could contravene regulatory guidelines on risky lending, Thomson Reuters IFR reported on Friday, citing sources. The recent move by the U.S. bank comes just weeks after rival bank Credit Suisse Group AG was rebuked by the Federal Reserve for failing to adhere to U.S. leveraged lending guidelines.The sources said the debt package provided by JPMorgan, along with Jefferies, to Vista Equity Partners to finance its$4.3 billion acquisition, had leverage well in excess of eight times and includes loans and bonds.The overall size of the debt was not known.The leverage total is higher than the six times ceiling that the Fed, the Federal Deposit Insurance Corp and the Office of the Comptroller outlined as acceptable under new guidelines announced last year as they try to curb reckless underwriting.
Credit Suisse Group AG is a Switzerland-based holding company engaged in private banking, investment banking and asset management areas. Shares of CS fell by 0.59% or $-0.16/share to $26.85. In the past year, the shares have traded as low as $26.38 and as high as $33.98. On average, 844172 shares of CS exchange hands on a given day and today's volume is recorded at 330400.
JPMorgan Chase & Co. (JPMorgan Chase) is a financial holding company. Shares of JPM traded higher by 1.8% or $1.06/share to $59.90. In the past year, the shares have traded as low as $50.25 and as high as $61.85. On average, 13025000 shares of JPM exchange hands on a given day and today's volume is recorded at 4648223.
TIBCO Software Inc. (TIBCO) is a provider of middleware and infrastructure software. Shares of TIBX fell by 0.73% or $-0.175/share to $23.72. In the past year, the shares have traded as low as $18.20 and as high as $26.69. On average, 4493280 shares of TIBX exchange hands on a given day and today's volume is recorded at 2181679.
Thomson Reuters Corporation (Thomson Reuters) is a provider of information for the world?s businesses and professionals. Shares of TRI traded higher by 1.59% or $0.5799/share to $37.09. In the past year, the shares have traded as low as $33.21 and as high as $38.73. On average, 659183 shares of TRI exchange hands on a given day and today's volume is recorded at 250308.
Thomson Reuters Corporation (Thomson Reuters) is a provider of information for the world?s businesses and professionals. Shares of TRI traded higher by 2.45% or $1.0/share to $41.76. In the past year, the shares have traded as low as $35.07 and as high as $42.10. On average, 643020 shares of TRI.TO exchange hands on a given day and today's volume is recorded at 202477.
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