Will Legal Problems Keep JPMorgan Chase Stock Down?
With shares of JPMorgan Chase (NYSE:JPM) trading around $51, is JPM an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
T = Trends for a Stock’s Movement
JPMorgan Chase is a financial holding company that provides various financial services worldwide. The company is engaged in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, asset management, and private equity. Financial services companies like JPMorgan Chase are essential for well-functioning economies around the world.
JPMorgan Chase is being fined $6 billion by the Federal Housing Finance Agency, which is accusing the bank of misrepresenting mortgages as meeting investors’s criteria. The company believes it should pay less to settle the losses experienced when borrowers failed to make payments and the value of the securities fell. This adds to a bevy of legal problems the bank is facing at the moment, including the London Whale trading scandal.