Enter multiple symbols separated by commas

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.”

Getty Images

“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?”

Gross said he would like to see Basel III regulation increase the level of bank equity and bank capital.

“What Pimco trusts is capital — the more capital the better and the less risk,” he said.


  • Stifel

    Stifel Financial is in advanced negotiations to acquire Barclays' U.S wealth management unit, according to three people familiar with the situation.

  • Pedestrians pass a Fidelity Investments office in Boston.

    U.S. fund managers have launched a new attack on global regulators as they fight a rearguard action against proposed rules. The FT reports.

  • On the eve of the GOP primaries, here’s the big question: What must we do to restore America’s long-term economic-growth performance?