JPMorgan, Morgan Stanley Are Pausing on Some US Renewable Deals

JPMorgan Chase & Co. and Morgan Stanley are among leading investment banks hesitating to provide a critical source of financing for US renewables projects.

The issue stems from a lack of clarity from the Trump administration over tax rules that restrict ties to China, according to people familiar with the matter.

The large banks are reluctant because they could face scrutiny under foreign investment rules tied to tax credits for renewables, according to the people, who asked not to be named because they aren’t authorized to speak publicly. Another big player, Bank of America Corp., meanwhile, is proceeding with ...