Goldman says JPMorgan should be broken up

Jamie Dimon

JPMorgan’s parts are probably worth more to investors than the whole after regulators proposed tougher rules penalizing firms for size and complexity, according to Goldman Sachs.

Bloomberg News reports that JPMorgan could unlock value by splitting its four main businesses or dividing into consumer and institutional companies, Goldman Sachs analysts led by Richard Ramsden wrote today in a research note. Units of JPMorgan trade at a discount of 20% or more to stand-alone peers, they wrote.

'Our analysis suggests that a breakup into two or four parts could unlock value in most scenarios, although the range of outcomes we assessed is wide, at 5% to 25% potential upside', the analysts wrote.

To access the complete Bloomberg News article hit the link below:

Goldman Says JPMorgan Should Break Itself Into Pieces

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