Big banks and private equity: Partners again

August 13, 2009 | By Jim Kim

The financial sponsorship business was great for the top investment banks--until the private equity business imploded in the credit crunch. That heated up a lot of the simmering tensions that were less important when everyone was making so much money.

Recall that KKR, among others, aimed to start up its own investment banking unit, in part to wrestle power away from the top banks. But a spike in business will smooth the rifts quickly, and JPMorgan may be sensing more business soon. The New York Post reports that CEO Jaime Dimon and Larry Alletto, who runs the bank's financial-sponsors group, have been meeting with top banks to assure them the bank is behind them.

For more:
- here's the article