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Bulletin: Bank of America Corp. And JPMorganChase Ratings Not Affected By Sallie Mae Purchase Apr 07
Standard & Poors, April 2007
Abstract
NEW YORK (Standard & Poor's) April 16, 2007-Standard & Poor's Ratings Services said today that the purchase of 24.9% stakes in SLM Corp. will not affect its ratings on Bank of America Corp. or JPMorgan Chase & Co. The effect on capital for each of the two banks is minimal. The $2.2 billion purchase price will result in a like investment in an unconsolidated subsidiary, which Standard & Poor's deducts from capital. However, the strategic benefits are unclear as neither bank will have managerial control, and revenue synergies do not appear to be well defined. Both of the banks are rivals in the student lending space, which complicates some of the issues of collaboration. Much of the eventual benefit will...
Companies mentioned in this report are: Bank of America Corp.,JPMorgan Chase & Co.,SLM Corp.
Action: Bulletin
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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