JPMorgan’s much ballyhooed $2 billion loss is no reason to ramp up regulations, noted bank analyst Dick Bove said Monday.
“I don’t think there’s any reason to break up the big banks,” he said on CNBC’s “The Kudlow Report.” “Particularly if a bank can earn $18 billion a year and $22 billion the next year, why in heaven’s name would you say it can’t be run?”
The Rochdale Securities analyst rejected the notion that JPMorgan Chase, which last week disclosed it had made a bad hedge, was in any sort of long-term financial trouble.
“It has $2.3 trillion worth of assets. It has $1.1 trillion worth of deposits,” he said. “That means there’s $1.2 trillion of wholesale-funded assets, which are used to do this trading. There are no taxpayer dollars involved.”
Bove also dismissed the idea that FDIC-insured deposits were being gambled.