MutualFundWire.com: Financial Times Agrees with MFWire Regarding JPMorgan

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Monday, October 7, 2013

Financial Times Agrees with MFWire Regarding JPMorgan

Where there's smoke,…

MFWire broke a story Friday about rumors that Jamie Dimon is looking to sell off some or all of JP Morgan Funds in order to cut down on regulatory heat. The article drilled down on the possible strategic thinking. In short, if Dimon is indeed looking to sell, there are many good reasons for the move.

On Sunday, the Financial Times ran an editorial making similar arguments in favor of breaking up JP Morgan. The article, written by Robert Jenkins, a senior fellow at Better Markets and a former member of the Bank of England’s Financial Policy Committee, argues that "if the bank is too big to control, it should be split up."

Here are some of his words on the subject:

Is JPMorgan Chase too big to manage? Or is its leadership just not up to the job? With penalties pending, the question is current. Given its importance to the financial system, an answer is pressing.

Today’s JPMorgan is the result of relentless M&A. It houses the former Chemical Bank, Manufacturers Hanover Trust, Chase Manhattan, First Chicago, Banc One, and Morgan Guarantee Trust – to name but a few. Since the crisis, Bear Stearns and Washington Mutual have joined the fold. Each component was a large and complex institution. Many ranked within the top 10 of their day. So not surprisingly,JPMorgan is a veritable banking behemoth.

Interestingly, that's not the only story the esteemed London publication ran Sunday on the subject.

The paper also ran a story reporting that the banking giant plans to kill off 100 out of 650 funds.

Interesting move. Interesting timing.

Printed from: MFWire.com/story.asp?s=46326

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