Rafferty Capital bank analyst Dick Bove spoke with FOX Business Network (FBN) Senior Correspondent Charlie Gasparino about what’s ahead for JPMorgan Chase.
Excerpts from the report are below:
On why JPMorgan Chase is likely to spin off a significant piece of the bank:
'Dick Bove told FOX Business exclusively that JPMorgan, in his opinion, is likely to spin off a significant piece of the bank to appease the regulators. He thinks the regulators, from the Fed to the SEC all these groups, these banking regulators that are investigating JPMorgan want a chunk of change out of them, not just money, but they want fundamental change at JPMorgan, meaning they want to downsize it because they think it’s too big to manage.
'I asked him which piece do you think they would spin off ? They don’t have a brokerage division (to speak of)…he said the likely candidate for a spinoff is the asset management business, but he really believes this - what’s going on all the stuff, all these investigations day after day piling on JPMorgan- is a concerted effort basically to force change at the bank. And he thinks the change that’s going to come is Jamie Dimon finally throwing in the towel on the business model which he cherishes'.
Source: FOX Business Network