J.P. Morgan (JPM) Could Unlock Value Through Asset Sales
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Price: $334.14 --0%
Rating Summary:
21 Buy, 26 Hold, 1 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 3 | Down: 6 | New: 29
Rating Summary:
21 Buy, 26 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 3 | Down: 6 | New: 29
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According to one analyst, J.P. Morgan (NYSE: JPM) might have some untapped potential hidden within, joining the rank-and-file right behind Bank of America (NYSE: BAC).
CLSA's Mike Mayo notes that J.P. Morgan might be able to divest its asset-management business moving forward maybe through an orderly divestiture. Mayo said his clients believe larger banks have underperformed on several fronts, including revenue, risk, stock price, and reputation.
Bank of America might be able to perform the same procedure with its brokerage and Citigroup (NYSE: C) with its Latin America unit.
Mayo thinks the overall goal for the banks would be to come out of any sale having less leverage and lower risk. He harkens back to Glass-Steagall of 1933, in which U.S.-backed deposit-taking firms would need to be kept separate from investment banks. Following passage of the Act, price-to-book ratios surged. Many banks today are trading well below their book value, even amid BofA's 100 percent gain in 2012.
Shares of J.P. Morgan are up 1.4 percent, trickling to session lows. BofA and Citi are also higher on the session.
CLSA's Mike Mayo notes that J.P. Morgan might be able to divest its asset-management business moving forward maybe through an orderly divestiture. Mayo said his clients believe larger banks have underperformed on several fronts, including revenue, risk, stock price, and reputation.
Bank of America might be able to perform the same procedure with its brokerage and Citigroup (NYSE: C) with its Latin America unit.
Mayo thinks the overall goal for the banks would be to come out of any sale having less leverage and lower risk. He harkens back to Glass-Steagall of 1933, in which U.S.-backed deposit-taking firms would need to be kept separate from investment banks. Following passage of the Act, price-to-book ratios surged. Many banks today are trading well below their book value, even amid BofA's 100 percent gain in 2012.
Shares of J.P. Morgan are up 1.4 percent, trickling to session lows. BofA and Citi are also higher on the session.
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