Will Settlement Concerns Keep Holding JPMorgan Chase Stock Back?
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 still struggling to reach a settlement with various regulators over various dubious practices as JPMorgan Chase doesn’t want to admit wrongdoing. An admission of guilt could open up the bank to the possibility of other lawsuits. In addition, Reuters has reported that JPMorgan Chase could get away with not paying regarding losses at the former Washington Mutual Inc. JPMorgan is in a dispute with the Federal Deposit Insurance Corp. over whether it’s responsible for losses from Washington Mutual, which the bank purchased during the financial crisis. If it gets off as not being liable, it could significantly reduce JPMorgan’s expected $11 billion fine.