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JPM Balance Sheet Resilient: Expert


Shares of J.P. Morgan sliding today on growing concerns over the big bank's exposure to the ongoing commodities crush. But on the "Halftime Report" CLSA bank analyst Mike Mayo argued that the bank is in fine shape to weather the storm.

Mike Mayo: JPM balance sheet resilient

Behind Mayo's bullish stance is J.P. Morgan's ability to cover its energy loans.

"They [JPM] have enough capital to charge off every dollar of every energy loan exposure eight times over," argued Mayo. Since they have the "defense" and the "capital," he believes the bank is well positioned even if oil continues to fall.

Also in J.P. Morgan's favor is its geographical spread. If energy heads lower, investors should be watching regional banks closely, Mayo argues.