Financial services company, JPMorgan Chase & Co. (JPM) saw a regulatory management downgrade following the “London Whale” loss.
The company’s management system was downgraded by the Comptroller of the Currency (OCC) in July to a level 3 which is a level which means the banks management “may be insufficient” and “needs improvement.” Management rating are from 1 to 5, with 5 being the worst. During the financial crisis in 2008 and 2009, banks like Bank of America (BAC) and Wells Fargo (WFC) were downgraded to level 3 based on current market risks.
The company’s downgrade was partially due to the “London Whale” incident, which refers to former JPM trader Bruno Iksil, who lost the company $6 billion in a single trading lost.
JPMorgan shares were mostly flat during Wednesday morning trading. The stock has increased 8.5% in the past year.
The Bottom Line
Shares of JPMorgan Chase & Co. (JPM) have a 3.08% yield, based on Wednesday morning’s price of $49.36.
JPMorgan Chase & Co. (JPM) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.