Pimco's Gross: JPMorgan 'One of the Best-Run Banks'
One day after JPMorgan Chase announced that it had suffered a trading loss of at least $2 billion, Bill Gross, Pimco's managing director and co-CIO, told CNBC that it was still one of the “best-run banks in the world.”
“It’s got $120 billion of Tier-1 capital,” he said. “That’s 10.5 percent, which is higher than the 9-percent U.S. average.”
JPMorgan's trading loss stemmed from a failed hedging strategy. The disclosure shocked many investors and sent the company's stock down 8 percent in trading on Friday.
Still, Gross stood by the bank's capital levels.
“So it’s a well-run bank and decently capitalized bank” he added. “I think we should ask the question and you have — should banks in general should be doing these types of trades?”