Twenty Billion Reasons To Be Fearful ?

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Remember everyone was patting JPMorgan Chase on the back last week for having the cojones to provide the $20bn bridging finance for AT&T to acquire T-Mobile USA from Deutsche Telekom ? Well not everyone is best pleased.

Reuters reports that Moody's Investors Service has come out and said:

'We believe JPM's $20bn commitment is credit negative, as it highlights JPM's increased appetite for risk.

'If this translates into giving the bank an advantage in winning the mandate to underwrite AT&T's long-term bond issuances to pay off the bridge facility, then it may encourage more banks to take on greater single-risk exposure, which would be a credit negative for the industry, including JPM'.

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