FBN’s Gasparino is reporting that the contest to underwrite General Motors initial public offering could come down to JP Morgan Chase (JPM) and Bank of America (BAC). One of them could win the right to split the lion share of as much as $300 million in underwriting fees in one of the largest paydays Wall Street investment bankers have seen in years, FBN has learned.
“All the signs coming out of Washington are that JPMorgan and BofA will win the deal,” said one person with knowledge of the matter. Possibly contesting BofA, which owns the massive Merrill Lynch brokerage sales force, is Morgan Stanley (MS), which has its own unit of brokers who deal with small investors.
This person said as of now that Treasury and GM want one lead underwriter that deals with small investors, and one that focuses primary on institutional clients. But that might change as both Morgan and Goldman redouble efforts to get into the deal, thus prompting GM and the government to split the winnings among a bigger pool of firms.”