Wall Street Hates JPMorgan Fee for $1 Trillion Junk Loans
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On Wall Street, $3,500 goes further than anyone dared imagine in the 1980s when the predecessor to JPMorgan Chase & Co. charged the fee to trade each non-investment grade loan it sold.
That surcharge remains the same today and helps the biggest U.S. bank dominate the secretive $1.1 trillion junk-loan market while stifling profits for investors and rivals, which mostly stopped charging it years ago. The New York-based bank waives it for exclusive customers: trade with JPMorgan, no fee; trade one of its loans with anyone else, pay up.