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The headlines may be all about JPMorgan and Jamie Dimon’s testimony before Congress, but widely followed bank strategist Dick Bove of Rochdale Securities says, the horse and pony show is diverting attention away from something much more important.Bove says forget about Dimon’s appearance before Congress and those outsized bets made in the derivative markets, resulting in an unexpected loss of at least $2 billion.“Who cares about the size of the loss – JPMorgan makes more money than any other bank in the world,” said Bove on CNBC’s Fast Money . “What matters is that there are only 5 companies in the entire US that make more money than JPMorgan.”
And Bove goes on to explain that even if the loss comes in twice as big as expected or $4 billion, it won’t hurt JPMorgan’s bottom line in any meaningful way.“Assume JPMorgan earnings are knocked down 25% - it will still be one of the 12 biggest earners of any company in the United States. And right now it’s trading at a discount to book – that makes no sense whatsoever.”
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