JP Morgan faces being lumbered with $12 billion (£5.8 billion) of debt after failing to drum up investor interest in financing Cerberus Capital Management's acquisition of Chrysler, the loss-making American carmaker.
Cerberus won out against rivals in May to buy an 80.1 per cent stake in Chrysler from German parent DaimlerChrysler, for an initial consideration of $7.4 billion and a further $20 billion that will be injected into the company's pension fund as well as its financial services group.
