JPMorgan Credibility Cut With Fitch Downgrade
Written by: Shanthi Bharatwaj,Antoine Gara
Tickers in this article:
Still, in spite of JPMorgan's strong financial footing and its record in managing risks through the crisis, uncertainty abounds about how big its trading problem will become. "This could be a binary event where the company either gains or loses on this trading position and, until the company is able to unwind this portfolio, there is little clarity into and a lot of uncertainty surrounding JPMorgan's future earnings," wrote FBR Capital Markets analyst Paul Miller, when downgrading his outlook on shares to market perform.
Dimon said so much in JPMorgan's call on Thursday. "We're willing to bear volatility... Obviously, we're going to work hard to have that not be a negative at all. But it is risky, and it will be for a couple of quarters."
-- Written by Antoine Gara and Shanthi Bharatwaj from New York.