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Rochdale Securities bank analyst Dick Bove argues journalists and politicians are out to destroy J.P. Morgan.
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It up for that -- rocked out securities analyst Dick Belgrade -- journalists and politicians.
Are out to destroy JPMorgan the most profitable blank in the world it is the subject of this latest now and he joins us now to explain.
Dick I -- notes because you always company you know the first that is always grabs your attention that's one especially.
Why do you think that journalists and politicians are attempting to destroy JPMorgan -- debate that's.
But I think the first is that there's a misconception as to what the company is people don't realize.
It in over the last week or so since I've been talking about this it's clear that they don't realize how successful this company is if you take a look at the fortune 500 list you'll find that they're only five companies in the United States that make more money than JPMorgan and yet -- constantly read the big banks -- too big to be managed.
And yet this company makes more money than IBM GE Coca-Cola buys -- You name it secondly this bank is the most profitable bank in the world no other bank makes as much money is JPMorgan.
So if this bank is is not.
To be managed properly.
What is the company -- earned that it has managed properly in this industry so I think vs selling this misconception about the bank.
Is is -- very big issue secondly I think that.
You know we're looking at asking this bank to have more capital than any other bank because of its size we're asking this bank to have price controls on sort of the products that it sells we're asking this bank.
Two -- changed it's tax policies to pay more taxes than other banks and we're asking this bank to eliminate the risk that it takes in certain of its transactions.
Even though the nature of banking is to take risks.
So -- -- hemming it in and then on top of that.
-- you know going back to the Kennedy era where they pulled brought to block candy people Roger blot on his bed between victory in the morning to talk to the FBI we have the FBI supposedly looking at this bank which is the biggest parts of.
Well do you expect any part of this is political payback because Jamie Dimon has been outspoken against the -- -- role.
You know he's somebody that you just seemed to be at supporter of President Obama and the beginning of -- no he likes to say that he doesn't support he's on the board of the New York -- and he doesn't necessarily support any candidate but he was certainly a lot more Obama friendly.
You know three or four years ago than he is now do you think any of this is -- political payback.
Well I think if you listen to their politicians who talk about what has happened here they probably have blisters clapping their hands and jumping for joy.
That it happened because -- gonna use it as the basis for arguing that Jamie Dimon you know exit too much was wrong in what he said should not have lobbied so hard to change these rules and that they would now gonna get.
Do you think -- -- in the argument that seems to be sticking it among analysts that -- is that maybe the bank is too big to manage and stay what you're saying from a profit standpoint and not act out of with staggering to keep a list that was put together -- Exxon Chevron.
Apple Microsoft and -- it make more money.
But it does there is some argument about can you really watch all the different pieces of the bank -- this bank what do you think about that argument.
Well I think it's true I don't think you can watch every element of it but the issue is can you manage it and I think that they if you generating the size of profits at this company generates.
Clearly they're managing it properly if a bank you know this year JPMorgan is to get to and -- billion dollar hit on this litigation reserve in the first quarter.
They'll take a two billion dollar hit this quarter on this trading thing I think next quarter.
They'll take another billion dollar hit on this trading thing so that's roughly five and a half billion dollars in yet at the same point in time at the end of the year they'll wind up earning more.
-- Goldman Sachs Morgan Stanley and Bank of America put together.
So how how can one argue that it's not being managed properly when it's doing so incredibly well.
RH -- nothing interesting contrarian point of view we appreciate it thanks coming on tonight.
