Fallout from the JPMorgan's $2 billion trading loss just keeps coming and coming.
Now, CEO Jamie Dimon has been asked to testify before Congress and explain circumstances surrounding the loss as Washington haggles over financial reform.
If lawmakers have JPMorgan in their sights, has the stock just become too hot to handle? Or is it a sign of the bottom.
“The Senate has a way of making people look stupid,” says trader Steve Grasso. “I want to see how Dimon comes off – if he comes off well – that could be the bottom.”
Trader Mike Murphy agrees and compares the decline in JPMorgan to the decline in BP after the Gulf oil spill. “At some point there’s value,” he says. “Could it go lower – yes. But I expect when Dimon gets in front of the Senate he does a good job and that buoys confidence.”
Trader Joe Terranova would not touch the stock with a 10-foot pole. “I’d just stay away. There are much better places to put money to work in this space. Take a look at regional bank Texas Capital Bancshares instead." he says.