Promote Your Attorney Profile on Law.net - Get Found / Earn More!
Urban Outfitters Pulls Offensive Sweatshirt
Urban Outfitters Pulls Offensive Sweatshirt
Chipotle Shuts Down as Workers Protest “Borderline Sweatshop Conditions”
Chipotle Shuts Down as Workers Protest “Borderline Sweatshop Conditi...
Home Depot Security Breach Could be Largest Yet
Home Depot Security Breach Could be Largest Yet
General Motors Investigation Continues
General Motors Investigation Continues
Job Listings

Goldman Sachs Banks on What JPMorgan Won’t Touch with Chesapeake

It’s usually head to head between JPMorgan Chase & Co. and Goldman Sachs Group, Inc., when they try to out vie each other for clients. That isn’t the case with Chesapeake Energy Corporation. Regarding Chesapeake, JPMorgan seems to be saying, “I’ll leave this one to you.” It isn’t exactly clear why.

Some anonymous commentators involved with the businesses said this might relate to Chesapeake’s shabby credit.

“It’s unusual to choose not to do any business with an organization that buys a lot of banking services,” said Douglas Elliot, a fellow in economic studies at the Brooking Institution. “If anything, there’s a tendency to be greedy and want the fees.”

While a big bank might like to reel in the extra fees involved with inconstant payments, JPMorgan seems to want no part. For more than a decade, they have declined business with both Chesapeake and its chief executive officer, Aubrey McClendon, 52.

What

 job title, keywords

Where

 city, state, zip



Get JD Journal in Your Mail
Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!


Forbes called McClendon “America’s most reckless billionaire.” Sachs in 2008 had extended him credit against this wine collection — one of the biggest in the U.S. His $3 million project to build a 31,000-square-foot warehouse to keep his wine collection was cut short. He also recently lost his job as chairman for Chesapeake.

In 2008, JPMorgan executives determined that Chesapeake didn’t meet their standards of the five P’s of lending: people, payment, protection, purpose, and perspective, concluding the business was not creditworthy.

“Banking in many ways is still a trust business,” said Elliot. “Different people form their own opinion in different ways about who crosses the minimum threshold of trust and who doesn’t.”

Meanwhile, Sachs seemed cheerful about Chesapeake:

“Chesapeake is a long-standing Goldman client and the company and its board recently turned to us for both advice and capital,” said Michael DuVally, Goldman Sachs spokesman. “We’re proud Chesapeake chose us and our involvement is consistent with our focus on helping our clients with their particular needs.”

Despite Sach’s seeming framing of the situation as if Chesapeake chose Sachs over JP, we must never less wonder if JP isn’t the classier outfit?

Goldman Sachs Banks on What JPMorgan Won't Touch with Chesapeake by

Tagged: , ,

Daniel June Posted by on June 25, 2012. Filed under Business News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

 

 

Job of the Day
Associate Workers’ Compensation Attorneys - Chicago Loop Office
USA-IL-Chicago

Rusin & Maciorowski, Ltd. is seeking a Workers’ Compensation defense attorney.  A minimum of 1-5 years experience is required to join our highly successful staff.  Firm offers competit...