Why The Algorithm Is Bearish On JPMorgan
At a global level, the scale of change in the banking industry since 2008 has been unprecedented. In the face of significant headwinds, banks have been trying to restructure themselves and rehabilitate the industry. JPMorgan Chase & Co. (NYSE:JPM) has been a focal point of debate on the American banking industry, with CEO Jamie Dimon stirring heated discussions about bank regulation and opportunities and challenges in global finance. The industry has suffered major reputational damage while the regulatory rulebook has been rewritten. At the beginning of this month, President Barack Obama stated in an interview with the Marketplace radio program that further reform is needed and some of the changes could include "restructuring the banks themselves." While praising the four-year old Dodd-Frank law requiring large banks to hold bigger capital cushions as well as the tightening of consumer protection rules, he also singled out bank trading desks as being a particular area of residual concern.