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Meredith Whitney: JPM Downgrade Long Time Coming
Posted by: Dheeraj Grover (IP Logged)
Date: July 4, 2012 08:27AM
JPMorgan Chase (JPM) was downgraded to "hold" by Meredith Whitney, founder/CEO of the Meredith Whitney Advisory Group. "This was the only large cap bank stock we had recommended, and now it is more in line with our negative stance on the group," she says.
Meredith downgraded the stock in light of the libor event, which she think will get much bigger. Also she is concerned about how big the loss will be related to derivative bets which JP Morgan disclosed in May. Stock has ralied 17% since the announcement and she thinks that it may be time to take some chips off the table.
On the derivative loss she said - It is tough to say how big will be a loss at the JP Morgan but it will surely much more than initial $2B announced by JP Morgan. She also said that fundamentals are really bad
Here is the video:
Stocks Discussed: JPM, C, BAC, MS, WFC,