JPMorgan Still Isn’t Sure What It Bought in 2008
You may have heard that JPMorgan Chase & Co. is paying a lot of people billions of dollars to settle those people’s lawsuits over bad mortgages that Washington Mutual sold them back in the day. Some people think that this is unfair to JPMorgan, since it wasn’t selling the bad mortgages,* WaMu was. Why should JPMorgan pay for the sins of WaMu?
Well, because it bought WaMu, is the reasonable answer. When you buy a company you assume its liabilities. “There are always uncertainties in deals,” notorious bank-hater Jamie Dimon once said. “Our eyes are not closed on this one.” This one being WaMu.**
Merrill Lynch, J.P. Morgan Securities Among Lenders in FNF Financing
Fidelity National Financial, Inc., a leading provider of title insurance, mortgage services and diversified services, announced the completion of the amendment of its existing $800 million senior unsecured revolving credit facility (“credit facility”) and the amendment of its $1.1 billion delayed-draw term loan (“term loan”) and the signing of a commitment letter (“bridge commitment letter”) that provides for an up to $800 million short-term loan (“bridge loan”). The amendments of the credit facility and the term loan and the bridge commitment letter are all related to FNF’s previous announcement concerning the agreement (“merger agreement”) to acquire Lender Processing Services, Inc. (“LPS”).
Among other changes, the amendments to the credit facility and term loan permit FNF to incur the indebtedness in respect of the bridge loan and incorporate other technical changes to describe the structure of the LPS acquisition.
Merrill Lynch, Pierce, Fenner & Smith Incorporated, J.P. Morgan Securities LLC, U.S. Bank National Association and Wells Fargo Securities, LLC acted as joint lead arrangers and joint book managers of the credit facility and term loan. Merrill Lynch, Pierce, Fenner & Smith Incorporated and J.P. Morgan Securities LLC acted as joint lead arrangers of the bridge commitment letter.