- While the possibility of breaking up JPM is quite low, there exists substantial upside for investors should it occur, says KBW's Chris Mutascio. The businesses - traditional banking, asset management, and private equity - are together worth $255.7B, he estimates, versus the current $197B market cap.
- Getting back to reality, Mutascio turns his focus on the ever-increasing scope of lawsuits and investigations facing the bank. While the costs from these are potentially "high and uncertain," the bank can "easily earn through them."
- The investigatory toll on JPMorgan is seen in the stock's underperformance against a broader bank index (KBE) of late, but rather than buying other banks on the hope short-term rates (and net interest margins) will rise, why not buy JPM shares at a discount and wait for the litigation storm to pass, says Mutascio.
at CNBC.com (Tue, 5:50PM)