Mumbai: Axis Bank has picked JPMorgan Chase and Citigroup for a share sale to raise up to $1 billion, three sources with direct knowledge of the deal said on Wednesday.
Axis Bank's share offering to institutional investors is likely to be launched in two to three weeks depending on market conditions, two of the sources said, declining to be named as the details of the deal are not public yet.
JPMorgan Chase & Co Chief Executive Jamie Dimon reshuffled his management team, in a step that analysts see as creating more checks and balances in the upper ranks after the bank suffered from embarrassing trading losses.
Analysts said the changes, announced on Friday, position Michael Cavanagh and Daniel Pinto as prime candidates to succeed Dimon, 56, when he is ready to retire.
Cavanagh, 46, and Pinto, 49, were named co-chiefs of commercial and investment banking. Matt Zames, 41, was named co-chief operating officer and is also seen as a strong candidate to succeed Dimon.
JPMorgan Chase & Co has agreed to pay $100 million to settle litigation by credit card customers who accused the largest US bank of improperly boosting their minimum payments as a means to generate higher fees.
The class-action settlement resolves a three-year-old case stemming from Chase's decision in late 2008 and 2009 to boost minimum monthly payments for thousands of cardholders to 5 percent of account balances from 2 percent.
It comes as JPMorgan, like many of its main rivals, addresses a wide range of litigation over its banking practices, such as whether it conspired to overcharge retailers on card transactions, or manipulated benchmark interest rates.
NEW YORK, NY - JULY 13: The headquarters of JPMorgan Chase bank rises over Park Avenue in midtown Manhattan on July 13, 2012 in New York City. The bank, which reported its second-quarter results on Friday, disclosed that the losses on a credit bet could mount to more than $7 billion, as the nation’s largest bank indicated that traders may have intentionally tried to conceal the extent of the loss. JPMorgan also said Friday that it would be forced to restate its first-quarter results.
Just three months ago, JPMorgan Chase was viewed as the top American bank, led by the steady hand of veteran CEO Jamie Dimon.
In the last couple of months that stellar reputation has eroded, with Dimon appearing before Congress twice to explain a $2 billion trading loss, which could be growing. Several government agencies have also launched investigations.
On Friday morning, Dimon will appear before Wall Street analysts to apprise them of the size of the loss and what he has done to protect the bank from a similar kind of loss happening again. A lot rides on his ability to restore trust in the bank and calm angry investors who feel betrayed at being misled just three months ago, when Dimon characterized the losses as a tempest in a teapot.
A sign left outside the offices of JPMorgan Chase & Co. after supporters of a proposed 'Robin Hood Tax' on investment transactions demonstrated June 19, 2012 on Park Avenue in New York. The proposal calls for a small tax on every financial trade that would raise money for public services.
