Skip to main content

You See Recommendation To Break Up JPMorgan And Say 'Why?'; KBW Analyst Dreams Of World With Four Little JPMorgans And Says 'Why Not?'

  • Author:
  • Updated:

JPMorgan Chase, the biggest U.S. bank by assets, would be worth 30 percent more if broken into its four business segments, an unlikely scenario, an analyst at Stifel Financial Corp.’s KBW unit said. JPMorgan’s businesses -- traditional banking, investment banking, asset management and private equity -- are separately worth $255.7 billion, KBW’s Christopher Mutascio said today in a note. That compares with the New York-based lender’s $197 billion market capitalization as of yesterday’s closing price. While the possibility of breaking up JPMorgan is “quite low,” it “could potentially result in substantial upside for current shareholders if the segments were valued like similar companies,” Mutascio wrote in the note. [Bloomberg]


Analysts Attempt To Call The JPMorgan (Second Quarter) Close

Despite Jamie Dimon's promise that JPMorgan will be "solidly profitable" for the quarter, some are skeptical given the growing estimates of Whale-boy's losses. According Mike Mayo, the bank "will only make $727 million...including $4 billion of losses in the unit that made the bungled bet [though] if the losses exceed $5 billion, JPMorgan could make an overall loss." Barclays' Jason Goldberg thinks things are gonna be okay here, and sees the bank making $3.3 billion, assuming you know who will have only lost it $3 billion when all is said and done. And yourselves? Start considering your predictions now, as come July 13, there will be a visit from the Sandwich Fairy and a coveted bath toy for whoever comes closest without going over. Will The Whale Swallow JPMorgan's Second-Quarter Earnings [Dealbook]