The New York Times reports that there is growing criticism of the powers that be at JP Morgan Chase and many are beginning to wonder if they are in denial and realise the nature of the bank's problems.
The bank is burdened by a troubled loan portofolio, is suing several insurance companies to recover around $1bn in respect of its exposure to Enron, its shares have fallen around 40% this year and the firm has managed only one quarter in profit since the much heralded JP Morgan / Chase merger in 2000.
Shareholders want to see a change in direction and some positive leadership from the men at the top. While it is true that the firm is currently cutting thousands of staff to save on costs, many feel that this will only mean that the bank will be unable to compete effectively with rivals when the upturn in the market eventually comes.
Investors want to see the bank clear out any other dodgy loans and analysts feel that bosses should bite the bullet and cut the dividend, which has remained unchanged since the merger, despite all the problems. The New York Times quotes a Prudential Financial analyst, who said that bosses should 'get out of the denial they are in'.
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