Analyst challenges JPMorgan exec about being 'trapped in the' group

Question Mark

Mike Mayo, the analyst who sparred at JPMorgan’s 2013 investor day with CEO Jamie Dimon, challenged the bank Tuesday about the logic of holding an asset-management business.

Bloomberg reports that Mayo, an analyst at CLSA Ltd., asked Mary Erdoes, CEO of JPMorgan’s asset manager, how it feels to be 'trapped' in a bank that he estimates is valued at about 40% less than companies in her business, based on price-to-earnings ratios.

'You would probably be worth a lot more as a standalone', Mayo said. 'How does it feel to be a 17 P-E business trapped in a 10 P-E company ?'.

Dimon has said clients benefit from the array of services provided by his company. JPMorgan is the largest U.S. bank, and today’s session featured presentations by commercial, retail and investment bankers, along with Erdoes, who oversees more than $2tril. She said her unit helps JPMorgan meet “holistic needs” of customers, and that the valuation hasn’t hurt compensation of top money managers.

'We work very hard to deliver the whole company to the clients', Erdoes said. 'Someday we believe that all the value of this part of the business will be reflected in the stock price'.

To access the complete Bloomberg article hit the link below:

Mayo Asks Erdoes How It Feels at Unit Trapped at JPMorgan

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