Thursday's Headlines: Banks big losers if AT&T, T-Mobile deal dashed

Wall Street will lose big time if the US Justice Department blocks AT&T's bid for T-Mobile.

Investment banks will lose around $150 million in advisory fees if the $39 billion acquisition is thwarted, DealBook says.

Investment banks involved in the deal are: JP Morgan Chase, Greenhill, Evercore Partners, Morgan Stanley, Deutsche Bank, Credit Suisse and Citigroup.

In fact, JP Morgan could lose its ranking as top M&A adviser if the deal falls through, Bloomberg adds.

"When the $39 billion sale was announced in March, it was hailed by bankers who for the most part had been starved of mega deals since the financial crisis," DealBook writes. "It would be the biggest deal this year and fifth-biggest United States acquisition since the crisis."

Other News:

Bank of New York Mellon CEO Robert Kelly quits due to "differences" with the board, replaced by Gerald Hassell. [New York Times]

Buffett's investment shows Bank of America possibly needs more capital than it's telling investors. [DealBook]

Amerprise Financial compensated CEO James Cracchiolo more than it paid in taxes. [Biz Journals]

UK regulators say extensive banking reform unlikely before 2015 election. [Financial Times]

UK bank shares rise on reports that regulators will wait with new rules. [Bloomberg]

SEC freezes assets of Neural Markets hedge fund, says manager lied to investors. [Hedge Fund Net]

Ex-Galleon's Craig Drimal sentenced to 5.5 years in jail for insider trading. [BusinessWeek]

IMF estimates European banks have a 200 billion euro capitalization gap. [Reuters]

Ex-Diamondbank Capital's Anthony Scolaro settles SEC insider trading lawsuit. [BusinessWeek]

Banks in Europe seek to bypass London, moving more business overseas. [Bloomberg]

Greece's Piraeus Bank asks for emergency liquidity funding from central bank. [Financial Times]

Banking attracts more UK graduates than any other industry, first time since 2008. [Bloomberg]

French banks have more capital now than a year ago, IMF report shows. [Dow Jones Newswires]

Bank of America plans to sell correspondent mortgage unit to focus on strengths. [Wall Street Journal]