logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Will The Government Try to Split Up JPMorgan?

  +Follow August 21, 2013 11:27AM
Share:
Tickers Mentioned:

It’s no secret JPMorgan Chase & Co. (JPM) is under intense scrutiny right now from federal regulators. During the course of this summer alone, the bank has settled for $410 million for energy price fixing, had two former traders indicted by the Department of Justice for their part in a $6.2 billion trading loss, and been implicated in a far-reaching bribery scandal involving Chinese financial regulatory officials.  

For a financial house that did $26 billion in revenue in the second quarter of 2013 alone, the fines, settlements, and government sanctions are a cost of doing business. But the SEC seems to be moving in an especially aggressive manner against JPMorgan, leading some analysts to begin speculating that they may be targeting the bank for a potential breakup.

Popular analyst and Vice President of equity research at Rafferty Capital Markets Dick Bove suggests the “(United States government) wants the firm broken up and the management changed. Every action that it has taken in the past few years is oriented towards this goal.”

Liz Peek of the Fiscal Times suggests that the bank – lauded during the 2009 fiscal crisis for their restraint – has been specifically targeted by the Obama administration for its reckless behavior and arrogance, citing critical remarks CEO Jamie Dimon made back in 2012. Dimon specifically claimed American business was responsible for creating the 4 million new jobs in America and “government didn’t have anything to do with it.”

Regardless of motive, the government has certainly zeroed in on JPMorgan. The SEC took the unusual step of requesting that JPMorgan admit to wrongdoing in their role in hiding the $6.2 billion trading loss from investors. Usually, the bank would have been allowed to settle without admitting or denying culpability.

Such a statement from JPMorgan could open them up to fraud allegations from shareholders affected by the trading loss. The results could significantly impact JPMorgan’s chances of remaining one entity.

In January US labor unions tried to organize a shareholder vote to break up the company, which JPMorgan was able to block. With increasing governmental pressure, a breakup push could come again very soon. Except this time it will be, as Bove put it, “coordinated from above.”

JPMorgan is down 1 percent to hit $51.61 on the day. The stock is down 7.85 percent on the month.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


Signup for our daily newsletter and get our best articles emailed right to you!

Results for jpm
4-traders.com
16 Sep 14 01:20:02
Geely Auto (00175) plans to issue USD senior notes http://t.co/SHuhEtRMWG $0175 $C $JPM
Stockaholics
16 Sep 14 01:06:32
$AZFL Gained 68.2% In Just 3 Days, After Our Penny Stock Alert! Huge Update: http://t.co/f6EXGyxEe9 $LVS $JPM $MHYS
LuLzTΞ4MN|MJΞH™
16 Sep 14 00:29:26
my DM's as empty as your @s *behaves* hey buy my $JPM please - peeps bout to know ...
Investors Hangout
16 Sep 14 00:19:35
$BITA Day Low Click Here: http://t.co/BwIkZgvElx Also See: $DRYS $JPM $LHPT $DRIO ~
Dow Stocks
16 Sep 14 00:17:03
#Dow #stocks $JPM JPMorgan Chase Daily:-0.15% Weekly:0.08% YTD:4.53% Trend:58 / 100 http://t.co/EovIb6YJsz
Rosner Stocks
15 Sep 14 23:57:25
$BEAV Summary Click Here: http://t.co/tJIiztgFKN Also See: $S $JPM $GEIG $GLUU ~
chartguy89
15 Sep 14 23:09:57
JPM 59.94 Stock Charts $JPM JPMorgan Chase & Co. (NYSE) Last Updated: 09/16/2014 01:10:00 JPM Stock Chart - 1 http://t.co/te3F8vBrL6
4-traders.com
15 Sep 14 22:40:02
JPMorgan Chase : JP Morgan raises Xinyi Glass to HK$6.7 http://t.co/H47L5JEV7G $JPM $3300
Rosner Stocks
15 Sep 14 22:36:30
$AEM Tick Click Here: http://t.co/KBClmCTLma Also See: $JPM $MU $BRK/B $RSP ~
Chasing Stars
15 Sep 14 22:36:07
$AGCO Filings Click Here: http://t.co/5QmXH5505M Also See: $BITA $A $NWTR $JPM ~
LuLzTΞ4MN|MJΞH™
15 Sep 14 22:25:51
.@wanitalilly #BACONCONFETTI $JPM jeje @WellsFargo have you been affected by #BaconConfetti??
Reverse Vampire
15 Sep 14 22:23:36
RT @MyWhatNinja: *throws bacon confetti at ALL of you* #ALLOFYOU $JPM
LuLzTΞ4MN|MJΞH™
15 Sep 14 22:23:25
*throws bacon confetti at ALL of you* #ALLOFYOU $JPM
XBanker Trader Guyer
15 Sep 14 21:59:36
LEGAL NOTICE: Author and/or affiliated/associated financial sponsors have positions in #FinancialSector equities. $XLF $C $JPM $STI $PULB
XBanker Trader Guyer
15 Sep 14 21:50:56
#FinancialSector #Boom $C $JPM #LargeCapTechBoom $QQQ $MSFT $INTC $IBM $AMAT http://t.co/UkhLZVP5hJ Cc: @larry_kudlow http://t.co/CqcGWpN1rV
Atlanta
15 Sep 14 21:36:01
#Buy $DNAX #DNA #Energy #Drinks #New #CEO #Real #Experience > $FNMA $HEMP $PMCM $PHOT $PLPL $CBIS $JPM $GS $MS $TSLA $FB $TWTR $GOOG $MSFT
4-traders.com
15 Sep 14 21:30:04
JPMorgan Chase : Iron Mountain to Take Part in J.P. Morgan U.S. All Stars Conference http://t.co/10nYAohiS5 $JPM $IRM
Stock Wire
15 Sep 14 21:21:01
ITC Holdings Corp. Rating Reiterated by JPMorgan Chase & Co. (ITC) $JPM http://t.co/GCLLJPNqjy
awolam
15 Sep 14 19:41:41
RT @SeekingAlpha: Hess Corporation And Apache Corporation Lead 10 Best Value Long Bond Trades http://t.co/LqUZS4fAFP $APA $COP $PEP $JPM $S…
Stock_Tracker
15 Sep 14 19:40:48
JP Morgan Chase & Co (JPM) 59.94 $JPM JPMorgan Chase Announces 2014 Dodd-Frank Mid-Cycle Stress Test Results B http://t.co/VQhKF0PGJE
iHangout
15 Sep 14 19:36:37
http://t.co/jYcEVtZYAh chartguy89: Stock Charts: JPM 59.94 Stock Charts $JPM JPMorgan Chase & Co. http://t.co/y5jzCSES8V
chartguy89
15 Sep 14 19:33:21
JPM 59.94 Stock Charts $JPM JPMorgan Chase & Co. (NYSE) Last Updated: 09/15/2014 21:33:23 JPM Stock Chart - 1 http://t.co/RkVyLDwaDb
Evener Investment
15 Sep 14 19:30:54
RT @SeekingAlpha: Hess Corporation And Apache Corporation Lead 10 Best Value Long Bond Trades http://t.co/LqUZS4fAFP $APA $COP $PEP $JPM $S…
Alysia Sarkisian
15 Sep 14 19:27:58
RT @SeekingAlpha: Hess Corporation And Apache Corporation Lead 10 Best Value Long Bond Trades http://t.co/LqUZS4fAFP $APA $COP $PEP $JPM $S…
Quantpost Financial
15 Sep 14 19:27:45
$JPM News Alert: http://t.co/mxc49zMv17 Updated options view: https://t.co/yHFkP4K7W1 All options views: https://t.co/70xv7VQT5H
Seeking Alpha
15 Sep 14 19:27:43
Hess Corporation And Apache Corporation Lead 10 Best Value Long Bond Trades http://t.co/LqUZS4fAFP $APA $COP $PEP $JPM $SE $WPZ $VLO $PSX
Stockaholics
15 Sep 14 18:47:22
Our SECRET Alert on $INOH Closed Up 60% For Platinum Members Today! Major News: https://t.co/HzD6J3YtmW $LVS $JPM $MHYS
Steve O'Halloran
15 Sep 14 18:46:51
RT @jpmorgan: $JPM ’s Amy Bell featured in @HuffingtonPost’s #PioneersForChange to discuss her journey into #impinv: http://t.co/JsyWVpF4rO
Investors Hangout
15 Sep 14 16:55:51
$EOD P/E Ratio Click Here: http://t.co/vQgXD3XTWL Also See: $JPM $NEM $BBRY $SMH ~
PennyStock Zone
15 Sep 14 16:48:56
Best day trading DVD by Fous Alerts check it out! http://t.co/AeQ95GG2rM #stocks #trading #nasdaq #nyse $JPM $ROST $CDNS $GPS $ALGN
Investors Hangout
15 Sep 14 16:05:12
$BBRD News Click Here: http://t.co/6evOFQeU8p Also See: $JPM $BAC $MMM $FRHV ~
12Stocks.com
15 Sep 14 16:01:18
Dow #Stocks Trend $PFE $GS $PG $MCD $JNJ $MMM $IBM $JPM $TRV $DD $DIS $V $GE $UTX $CVX $HD $CSCO $MSFT $NKE $XOM @ http://t.co/TvzJfd0RGT
Stock Wire
15 Sep 14 15:48:40
DigitalGlobe Stock Rating Upgraded by JPMorgan Chase & Co. (DGI) $JPM http://t.co/KOhxHat9Ib
Chasing Stars
15 Sep 14 15:38:21
$ANY Short Sales Click Here: http://t.co/3WUZukKIMM Also See: $YELP $JPM $TZA $INTC ~
4-traders.com
15 Sep 14 15:30:05
Senior BNP Paribas energy traders quit; bank denies downsizing http://t.co/fj8aFs8oCi $BNP $JPM $SRE
Stockaholics
15 Sep 14 15:27:33
Our SECRET Alert on $INOH Closed Up 60% For Platinum Members Today! Major News: https://t.co/HzD6J3YtmW $LVS $JPM $MHYS
Evangelos Vorrias
15 Sep 14 15:09:16
RT @theflynews: $JPM JPMorgan releases results of its mid-cycle stress test: Full Story http://t.co/4bWu1yrsFH
The Fly
15 Sep 14 15:06:14
$JPM JPMorgan releases results of its mid-cycle stress test: Full Story http://t.co/4bWu1yrsFH
BV Financials
15 Sep 14 14:57:02
$JPM JPMorgan Chase Announces 2014 Dodd-Frank Mid-Cycle Stress Test Results.. http://t.co/YxfmAjpG3p
Fortune 500 Inc
15 Sep 14 14:38:28
RT @jpmorgan: $JPM ’s Amy Bell featured in @HuffingtonPost’s #PioneersForChange to discuss her journey into #impinv: http://t.co/JsyWVpF4rO
J.P. Morgan
15 Sep 14 14:37:46
$JPM ’s Amy Bell featured in @HuffingtonPost’s #PioneersForChange to discuss her journey into #impinv: http://t.co/JsyWVpF4rO
Patrick
15 Sep 14 14:00:13
#SENTISHIFTUP $MSFT $MCD $TAX $DE $DNDN $IGN $JPM $VZ $PFE $TGTX #quantheta
Donald van Deventer
15 Sep 14 13:44:27
RT @KamakuraCo: U.S. Dollar Cost Of Funds Index 0.911% At 5 Years, Up 0.078% Today $BAC $C $JPM $WFC http://t.co/75Z0RTwgJN via @salphatren…
Bidness Etc
15 Sep 14 13:42:24
How Bankers Are Helping #USA Investigators http://t.co/hA6f2Gj44M $BAC $WFC $JPM $C
Craig Scott
15 Sep 14 13:18:08
@CNBCFastMoney @karenfinerman better bet rest of year $bac or $jpm?
NASDAQ
15 Sep 14 13:16:47
$JPM - Free Writing Prospectus - Filing Under Securities Act Rules 163/433 (fwp) http://t.co/x0IuEfdyS6
$Stocknewsalerts
15 Sep 14 13:15:36
$JPM New SEC Document(s) for JPMorgan Chase & Co. From our Stock News Alerts App
Stock Wire
15 Sep 14 13:14:21
JPMorgan Chase & Co. Upgrades Aquarius Platinum Limited (UK) to ... $JPM http://t.co/Ai5OCK2bzD
Donald van Deventer
15 Sep 14 13:08:15
RT @KamakuraCo: Kamakura Adds Credit Default Swap Trading Volumes To KRIS Default Probability Service $XOM $JPM http://t.co/ungcvAq8jQ via…
Chasing Stars
15 Sep 14 13:07:23
$JPM P/E Ratio Click Here: http://t.co/BgqJcGcl4X Also See: $DIA $ALL $IBM $T ~
				
				
  +Follow August 21, 2013 11:27AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.