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FBN’s panel on whether investors should buy, sell or hold shares of JPMorgan in the wake of the ‘London whale’ fallout.
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The bank took eight months ago.
Don corrected average -- three million last year still though what the cut it could be looking to take home around sixty million dollars this year JPMorgan up over 30% over the past six months climbing ahead of tomorrow's earnings.
Tot mega minister AG and meant at its.
-- -- should buy sell -- -- JPM right now.
Pretty basic question ma'am does start with you you're -- you're worried about I think the noises what you -- about JPMorgan.
-- -- -- tell him.
Well.
Sure I'm concerned about.
-- -- well issues -- -- continued fallout you know obviously JPM dodged a ball with the latest fed.
Basically slapping their hands and not causing -- or not charging any finds.
But to my knowledge or seven other legal and regulatory.
Agencies that are still investigating the London trade I think there could be some type of fallout may be more fines and I just think that JPMorgan though a very good company will probably beat earnings.
There is too much noise a concern I think there's other companies that have.
Equally strong management that haven't moved as much you mention it was up over 36%.
Last year up 5% year to date.
I think there's other safer banks to look at and I -- being more selective them buying a company that you know more regulatory -- legal issues will still come out.
OK everything into the sector does this accident but at the same time hair -- you're not concerned about the regulatory regime given the news -- got yesterday from the SEC.
You upgrade of the -- -- ago.
That's exactly right -- in fact out was one of our primary concerns in the back half -- 2012 was the ongoing regulatory overhang if you will with JPMorgan.
But as we near the end of the year the recent and under their plan to go to the regulators they got the approval return terms of their share buyback.
We felt a lot more comfortable going into year where.
We it in our opinion be leading economic indicators actually holding up will live better than expected and you're talking about a company.
That is effectively number one in most of their major business lines taking market share.
And it's just not that expensive we think a lot of -- the overhang is now behind them.
And it's now about growing share -- and neat you know -- in an environment will bit better than what we did expect a few months ago.
Right and that what you're thinking like a behind the down -- C yep grade but at the same time -- you're saying that you think the government's gonna continue to take what you say you know 12 pounds of slash.
JPMorgan.
We still have Dodd-Frank there were still -- without the Sharon Basel III -- lady here but still on the pipe what do you say.
Sure I you know Todd announces corrected JPMorgan is a great company gaining share.
We have concern about the regulatory issues as well as the political issues that we think we'll have a deep impact on all financial stocks but particularly the money center banks.
That seemed to have no friends in Washington that will always be.
In the cross hairs of regulatory people when you look at that frankly a third of the rules have been implemented not one of them going forward be accretive to banks in terms of earnings or revenues so I think it's something.
When you look at the trade going Ford I think money senators will have a big trade just bash her good earnings release I think JPMorgan -- probably beat.
But I think it's something it's time to take profits and look at banks that are a little bit more conservative.
A little bit better run and not don't have the regulatory issues regulatory issues are real and we'll continue to increase in the government is not gonna stop hitting these banks in terms of as as I said as you agree to a -- two or three a flash going forward.
-- and I -- -- get a real quick response from Todd.
Overall the sector is gaining measure many say financials of the way -- right now Taiwanese.
Absolutely we we -- we like the brokers we love Citigroup like JPMorgan Wells Fargo.
We're taking advantage of the weakness in the market right now we're buying more these stocks are simply just not that expensive.
They're gaining share -- well positioned they're getting a lot of this regulatory overhang behind them we had the settlement earlier in the week all positive for the industry overall.
Aren't taught -- met Matt McCormick it is all about the financials gentlemen thank you for weighing in appreciate it.
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