Is It Time to Break Up Big Banks?: Poll
Still, CEO Jamie Dimon argued at the bank's investor day in February this year that the bank still benefited from being a conglomerate rather than a monoline business and that over time, the whole will be greater than the sum of its parts.
But the market does not seem to think so, which might be an entirely separate argument in favor of breaking up the big banks.
CLSA analyst Mike Mayo has frequently argued that JPMorgan might be worth more broken up, because it was not necessarily the best in class in every business and its shares were suffering unduly from a "conglomerate discount."
On Wednesday, KBW analyst also joined Mayo in arguing that the bank may have to consider breaking up. "We believe, contrary to public opinion, that JPM provides less regulatory risk to the system as a consolidated company than broken up," the analyst wrote. "That said, should the market continue to depress the multiples of universal banks regardless of underlying values, we believe the Board may explore options to unlock value. After analyzing several scenarios, we believe that spinning out Retail Financial Services (RFS) and Cards into an independent Chase brand may create approximately 50% in shareholder value from current price."
Readers, what do you think is the appropriate response to JPMorgan's trading fiasco? Vote in our poll and find out what others at TheStreet think.
-- Written by Shanthi Bharatwaj from New York