Bank analyst Meredith Whitney downgraded JPMorgan Chase (JPM) from outperform to hold, citing concerns that the bank’s losses on a controversial London trade could go much deeper than $2 billion.

Whitney, who founded Meredith Whitney Advisory Group and who gained national acclaim for raising early concerns about Citigroup in 2007, said she downgraded JPMorgan in the wake of a risky London trade that cost the bank billions. She noted that all banks continue to struggle when in it comes to raising capital.

Whitney told CNBC rumors have JPMorgan’s trading loss as high as $8 billion with some saying $5 billion. “You just have to wait and see what these companies really earn,” she told the network. “The fundamentals of the group (banks) are so bad.”

kpanchuk@housingwire.com

 

Most Popular Articles

Here are the mortgage lenders that borrowers like the most

J.D. Power’s 2019 U.S. Primary Mortgage Origination Satisfaction Study, released Thursday morning, showed that there are some lenders that customers seem to love working with more than others. Here are the ones that borrowers are partial to.

Nov 14, 2019 By

Latest Articles

Congressional vote on “de facto QM Patch” postponed

The House Financial Services Committee postponed a vote on H.R. 2445 on Wednesday, a bill that would fix the so-called QM Patch that’s set to expire in early 2021.

Nov 15, 2019 By