JPMorgan Thought BofA Wanted to Buy Javice Firm, Banker Says (2)

The senior JPMorgan Chase & Co. executive who led due diligence on its $175 million acquisition of student-loan startup Frank testified that the bank wrongly guessed that Bank of America Corp. was its rival for Charlie Javice’s firm.

In her second day of testimony in Javice’s fraud trial, Leslie Wims Morris, JPMorgan’s former chief of corporate development, offered insight into the bank’s thinking as it approached the deal. She said Thursday that the bank made its bid based on what Frank’s financial adviser, LionTree LLC, said would be required to beat out the competition.

Charlie Javice arrives at federal court in New York on Feb. 18.

Photographer: Michael Nagle/Bloomberg

Javice, 32, ...