Break up fees hitting banks?

Two deals are raising concerns about the break up fees that more banks may have to pay: the Sallie Mae deal, in which Bank of America and JP Morgan might be asked to contribute to the fee because they were equity investors, and the Axicom deal. Axicom has disclosed it is seeking a $65 million break up fee, payable not only from the equity investors in the now-busted $2.25 billion deal but also from lenders Morgan Stanley and UBS, according to Investment Dealers' Digest. Traditionally, the sponsors were the ones who were on the hook for such fees. The fees may seem astronomical. But for most banks, contributing to a break up fee would be much better than getting stuck with an unsalable debt.  

For more:
- here's the article from Investment Dealers' Digest

Related article:
- Almost buyers want out of Sallie Mae break up fee