More investigations please. JPMorgan (JPM +1%) crosses $58 per share for the first time in Jamie Dimon's CEO tenure (which began on Dec. 31, 2005). This compares to a $53.20 peak ahead of the financial crisis (the stock was in the 60s prior to the Internet bubble crash).
More importantly, the recent run has brought the shares above their book value of $52.01. Bank of America, Citigroup, and Morgan Stanley remain below book, though Morgan is close to breaking through.
In many ways, JPMorgan is better-run than before the financial crisis, says UBS' Derek De Vries, noting ROE of 18% for the year's first nine months compares to 12% during the same period in 2006 and 7% in 2005. Pointing to the rising dividend payout ratio (34% of earnings this year compared to 23% a year ago), RBS' Gerard Cassidy, says regulators won't let the bank do anything else with its money. "If you were a high-tech stock ... being called a utility would kill the stock price ... but being a financial called a utility is very positive."