Enter multiple symbols separated by commas

JPMorgan Downgrade 'Long Time Coming': Whitney

Meredith Whitney, CEO of the Meredith Whitney Advisory Group, downgraded JPMorgan to “hold” on Tuesday and told CNBC that it had been a "long time coming."

“It wasn’t the right time to do it when the stock announced a $2 billion writedown,” Whitney told "Closing Bell," referring to the bank's admission last month that it would post a trading loss of at least $2 billion.

But with JPMorgan rallying back 17 percent and now trading at a little above tangible book value, Whitney said, “we decided to do it before the holiday weekend in light of this Libor event, which I think is going to get a lot bigger.”

Whitney was referring to Britain's rate-fixing scandal, which this week forced Barclays to pay a $450 million fine and led to the resignations of its top three executives.

Before the downgrade, JPMorgan was the only large-cap bank Whitney had recommended. She said the downgrade brings it in line with her negative stance on the group overall.

“These banks are not even earning their cost of capital,” Whitney said.


  • What the fate of the Ex-Im Bank means for small business

    The clock is ticking for the Export-Import Bank. CNBC's Kate Rogers talk to Susan Axelrod, who exports quiches and desserts all over the globe via credit insurance from the bank and hears from Rep. Jeb Hensarling on why the Export-Import Bank needs to die.

  • White-collars walk to their lunch break in Pudong business district in Shanghai, China.

    Western banks are losing ground to China, as the world's second-biggest economy vies to establish its economic influence.

  • China continues rate cuts

    China's Central Bank cuts rates for the fourth time since November to help support its struggling economy.