Dick Bove, well-known banking industry expert at Rochdale Securities, was on CNBC to comment on JPMorgan (JPM, Financial) COE Jamie Dimon's testimony and investing in financials. He said Dimon's testimony was an "episode more for the public use, as opposed to any real legislation coming out of it."
Bove says forget about Dimon’s appearance before Congress and those outsized bets made in the derivative markets, resulting in an unexpected loss of at least $2 billion.
“Who cares about the size of the loss — JP Morgan (JPM) makes more money than any other bank in the world,” said Bove on CNBC's Fast Money.
“What matters is that there are only five companies in the entire U.S. that make more money than JPMorgan,” he added. And Bove goes on to explain that even if the loss comes in twice as big as expected or $4 billion, it won’t hurt JPMorgan’s bottom line in any meaningful way.
“Assume JPMorgan earnings are knocked down 25% — it will still be one of the 12 biggest earners of any company in the United States. And right now it’s trading at a discount to book — that makes no sense whatsoever.”
Here is the video:
Bove says forget about Dimon’s appearance before Congress and those outsized bets made in the derivative markets, resulting in an unexpected loss of at least $2 billion.
“Who cares about the size of the loss — JP Morgan (JPM) makes more money than any other bank in the world,” said Bove on CNBC's Fast Money.
“What matters is that there are only five companies in the entire U.S. that make more money than JPMorgan,” he added. And Bove goes on to explain that even if the loss comes in twice as big as expected or $4 billion, it won’t hurt JPMorgan’s bottom line in any meaningful way.
“Assume JPMorgan earnings are knocked down 25% — it will still be one of the 12 biggest earners of any company in the United States. And right now it’s trading at a discount to book — that makes no sense whatsoever.”
Here is the video:
