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Will The Government Try to Split Up JPMorgan?

  +Follow August 21, 2013 11:27AM
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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.

Results for jpm
i8 wamu
19 Apr 14 01:48:56
RT @Bettermarkets: RT @AaronLucchetti: Bernard Madoff, speaking from prison, claims JP Morgan knew of fraud. http://t.co/Ug1xSrAOyG, $JPM, …
satyuga
19 Apr 14 01:22:14
RT @L_JeanJean: $JPM OBV TREND+ // GAP DOWN // BREAKDOWN // RANGE // FIBO 23.6 http://t.co/kqIGWOXXaK
Finance Wire
19 Apr 14 00:38:45
Are you Investing in $CVD $GDI $JPM $DF #NASDAQ http://t.co/uKR1JpWV6F
Ben Franklin
18 Apr 14 23:44:10
RT @howtodoit1: As long as $JPM & other megabanks can create & purchase mortgage loans...nothing fundamental has changed. @nomiprins http:/…
Stock Herald
18 Apr 14 23:17:33
$JPM: [$$] J.P. Morgans Shao Zili to Become Vice Chairman of Asian-Pacific R... http://t.co/yKRk83uehI
Raj Ajrawat
18 Apr 14 22:58:38
Happy to be a $JPM alum right now with this new app, seriously!
ZaRdOz420WPN
18 Apr 14 22:52:07
RT @howtodoit1: As long as $JPM & other megabanks can create & purchase mortgage loans...nothing fundamental has changed. @nomiprins http:/…
Informer
18 Apr 14 22:07:07
$JPM: [$$] J.P. Morgans Shao Zili to Become Vice Chairman of Asian-Pacific R... http://t.co/f4xTGzLy1v
GavinGreenberg
18 Apr 14 21:06:06
$JPM: [$$] J.P. Morgans Shao Zili to Become Vice Chairman of Asian-Pacific R... http://t.co/IoJzZxYibq
SYNAPTIC PAIN
18 Apr 14 20:17:28
RT @howtodoit1: As long as $JPM & other megabanks can create & purchase mortgage loans...nothing fundamental has changed. @nomiprins http:/…
Cinthia Booker
18 Apr 14 20:11:21
Bearish or Bullish on these #stocks $AMT $COST $JPM $GAIN Worth a look http://t.co/iePCjaGJ38
Stock Herald
18 Apr 14 20:02:34
$JPM: [$$] J.P. Morgans Shao Zili to Become Vice Chairman of Asian-Pacific R... http://t.co/yKRk83uehI
Ban Torture
18 Apr 14 19:49:01
RT @howtodoit1: As long as $JPM & other megabanks can create & purchase mortgage loans...nothing fundamental has changed. @nomiprins http:/…
Glass-Steagall
18 Apr 14 19:46:51
As long as $JPM & other megabanks can create & purchase mortgage loans...nothing fundamental has changed. @nomiprins http://t.co/lHPMDoDuBA
Informer
18 Apr 14 19:34:05
$JPM: [$$] J.P. Morgans Shao Zili to Become Vice Chairman of Asian-Pacific R... http://t.co/f4xTGzLy1v
StockNews24
18 Apr 14 19:21:01
$JPM - [$$] J.P. Morgans Shao Zili to Become Vice Chairman of Asian-Pacific R... -> http://t.co/YojJmOqPA2 #stock #stocks #stockaction
Damien S. Faucher
18 Apr 14 18:36:04
$JPM [$$] J.P. Morgan's Shao Zili to Become Vice Chairman of Asian-Pacific Region http://t.co/4EDqLsISFv
GavinGreenberg
18 Apr 14 18:23:33
$JPM: Providence, R.I., sues firms over stock trades http://t.co/dfzifVpRvT
Damien S. Faucher
18 Apr 14 18:08:33
$JPM Providence, R.I., sues firms over stock trades http://t.co/D0bNEu7ntS
Stock Herald
18 Apr 14 17:39:34
$JPM: Providence, R.I., sues firms over stock trades http://t.co/i219U4cBfp
StockNews24
18 Apr 14 17:21:12
$JPM - Providence, R.I., sues firms over stock trades -> http://t.co/B1BFHC8wm8 #stock #stocks #stockaction
Insider Trade Alerts
18 Apr 14 17:14:32
Should you buy $AMT $IP $JPM $DUST View now http://t.co/mjCbAjs4cs
Next
18 Apr 14 16:55:58
market 1860 and I got a margin call,I'm officially qualify to work for $jpm London office.
Damien S. Faucher
18 Apr 14 16:47:04
$JPM Alibaba Said to Plan Hong Kong-Style Fees for IPO Bankers http://t.co/Li6QTCCPuI
Thor Edeson
18 Apr 14 16:43:14
Get the latest on $JPM $SD $EXR $RT Must see http://t.co/jcMjTYgpd0
Teodor Gareth
18 Apr 14 16:27:03
$JPM DS Smith plc Stock Rating Reaffirmed by JPMorgan Chase & Co. (SMDS) http://t.co/ZimJW2D4Ib
Stock Wire
18 Apr 14 16:25:23
DS Smith plc Stock Rating Reaffirmed by JPMorgan Chase & Co. (SMDS) $JPM http://t.co/mSJYrOfgHc
PennyStockSage
18 Apr 14 16:06:05
$STT #Pennystock Research on $JPM $RMD $LIVE Must see http://t.co/dABdZhqX1N
Damien S. Faucher
18 Apr 14 15:51:34
$JPM Western Asset Mortgage Capital Corp's "Neutral" Rating Reaffirmed at ... http://t.co/znoE8TATjE
Svelteei
18 Apr 14 15:18:33
$SNDK Free research on $JPM $SPR $IR #economy http://t.co/2GpzdlE3MW
Teodor Gareth
18 Apr 14 14:21:34
$JPM Ternium Rating Reiterated by JPMorgan Chase & Co. (TX) http://t.co/yYMWPZXm61
Stock Wire
18 Apr 14 14:16:55
Ternium Rating Reiterated by JPMorgan Chase & Co. (TX) $JPM http://t.co/wjNL5ouLtZ
Brecken Kingston
18 Apr 14 14:05:56
Should you buy $LSI $ORLY $JPM $LGND #financial http://t.co/pyLAnPZg3j
Stock Signaling
18 Apr 14 14:01:09
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Soltan Capital, LLC
18 Apr 14 13:45:11
@fabskihouse Check us Out on http://t.co/dtVWtGUqos $BAC $BA $GS $JPM $JNJ $SLV $LNKD
Soltan Capital, LLC
18 Apr 14 13:45:05
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18 Apr 14 13:44:59
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Loic Jeanjean
18 Apr 14 13:30:27
$JPM OBV TREND+ // GAP DOWN // BREAKDOWN // RANGE // FIBO 23.6 http://t.co/kqIGWOXXaK
Informer
18 Apr 14 13:20:34
$JPM: Why cheap stocks are for suckers http://t.co/uVPlJAhTVe
Hugh Griffin
18 Apr 14 13:08:00
$CPA Todays Stocks you should Watch $JPM $FLT $ISRG #Stock http://t.co/9tSPlNYuR6
GavinGreenberg
18 Apr 14 12:27:08
$JPM: Why cheap stocks are for suckers http://t.co/jEJFXGiBos
Rio Kinlan
18 Apr 14 11:48:28
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OTPicks.com
18 Apr 14 11:44:21
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OTPicks.com
18 Apr 14 11:44:18
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O T P i c k s . com
18 Apr 14 11:44:15
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Stock Herald
18 Apr 14 11:23:48
$JPM: Why cheap stocks are for suckers http://t.co/EaLTin4nrG
Legend Boulstridge
18 Apr 14 11:07:24
Are you hanging on to $GRMN $HD $JPM $PCLN #investing http://t.co/PPhvCNpAKN
Ansel Gonzalez
18 Apr 14 10:24:39
Is it breakout time on $CPT $NCLH $JPM $CHTP Give it a try http://t.co/syw3hYkqMh
Informer
18 Apr 14 10:20:57
$JPM: Why cheap stocks are for suckers http://t.co/uVPlJAhTVe
				
				
  +Follow August 21, 2013 11:27AM
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