Skip to content
Subscriber Only
Gillian Tan

JPMorgan Health Venture Poses a Hazard to Its Deal Fees

But the trade-off in lower medical costs and a potentially lucrative new business could be worth it.
1517335582_GettyImages-519237232 (1)
Photographer: Mark Wilson/Getty Images

Snubbing JPMorgan Chase & Co. investment bankers may soon become the norm in one pocket of Corporate America. But the bigger picture justifies the sacrifice.

The largest U.S. lender said on Tuesday that it's teaming up with Berkshire Hathaway Inc. and Inc. to lower the cost of U.S. employee health-care coverage . The move sent a shock wave through stocks of pharmacy benefit managers and health-care insurers, many of whom have turned to JPMorgan for advice over the years.