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Wall Street’s $40 Billion AT&T Pledge Offers Fees and Risks

While ‘lucrative’ for banks, regulatory uncertainty exists
Markets can swing while regulators dwell on deal approval

Bloomberg business news — Wall Street Fee Payday Behind $40 Billion AT&T Pledge
Photographer: Andrew Harrer/Bloomberg

By

Sally Bakewell and

October 23, 2016, 6:28 PM UTCUpdated onOctober 24, 2016, 2:38 PM UTC

Wall Street banks are writing some of their biggest checks ever to fund AT&T Inc.’s takeover of Time Warner Inc. as they seek a bonanza of fees. But there’s a dose of concern that the $40 billion loan pledge may get caught up in a regulatory impasse.

JPMorgan Chase & Co. has pledged $25 billion of the financing, with Bank of America Corp. providing the rest, according to a regulatory filing. That’s believed to be the most JPMorgan has ever promised for a deal, according to a person with knowledge of the matter who asked not to be identified without authorization to speak publicly.

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