JPMorgan Chase & Co. (NYSE:JPM) has lost more than 2.5% in the past three months of trading

by Sean Patterson | Tuesday, Aug 27, 2013 | 860 views

Northern, WI 08/27/2013 (usastockreport) – Since JPMorgan Chase & Co. (NYSE:JPM) had lost around $6 billion through its trading on derivatives in the year 2012, the company had constantly been put under scrutiny by the regulators. This major scandal was named as the London Whale and it had engulfed the firm completely with heavy criticism from the analysts and the regulators, especially after the Chief Executive Officer, Jamie Dimon had named the situation to be tempest in a teapot. Since the issue was taken up for investigation, the investment banking firm had been continuously facing heavy fines and claims from the government agencies of different nature.

It is further worth noting that the stock of JPMorgan Chase & Co. (NYSE:JPM) had lost more than 2.5% in the past three months of trading. However, it had also been commented by few analysts that such heavy fines and investigations by the government agencies are just attempts to force the break out of the bank so that the financial system would effectively get rid of such large institutions which prove too big to fail. It is recently commented in an analysis report by KBW that the total sum of the values of all the four operating segments of the company are presently valued at 30% discount relative to the values of other similar businesses operating in the sector.

It was commented that such heavy discount proves to be alarming even under the present situation of higher level of investigation claims against the company. It was noted that the value of four operating segments of JPMorgan Chase & Co. (NYSE:JPM) was a total of $255.7 billion relative to the current market capitalization of the company at $196.9 billion. This variance of $58.7 billion is noted to represent the 30% discount as reported by the analysts.

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