Senior Wall Street bankers are warning that a plan by US regulators to rewrite the rules of tax-equity investing will deliver a major blow to a market dominated by JPMorgan Chase & Co. and Bank of America Corp.
At issue is the perceived risk of tax-equity investments, which are a form of financing in which banks provide capital to green projects in exchange for tax credits. It’s a market in which JPMorgan and BofA have been estimated to do more than 50% of the roughly $20 billion worth of annual transactions.