Tags: Bove | lawsuits | JPMorgan | bank

Bove: Government Lawsuits Against JPMorgan 'Outrageously Unfair'

By    |   Thursday, 26 September 2013 08:13 AM

The government is playing dirty pool in all its lawsuits against JPMorgan Chase, says ace bank analyst Dick Bove, vice president of equity research at Rafferty Capital Markets.

"What the United States government is doing to this company is outrageously incorrect and unfair," Bove writes in a commentary obtained by CNBC.

"It lacks even the simplest concepts of equity and honesty. Moreover, the actions of the government are dangerous to its citizens and the standing of U.S. banks in the global financial system."

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The suits will hurt the bank's finances, Bove says. Just last week it agreed to pay nearly $1 billion to settle a series of government investigations, and the worst may be yet to come, according to The New York Times.

"I lack the knowledge to ferret out all of the ways that this company's business operations will be changed, but make no mistake they are being changed," Bove notes. "This will impact the secular growth of the company."

The lawsuits could take $5.8 billion from profits this year, Bove estimates. And the cost could rise to $8 billion a year for the next few years.

John Coffee, a professor of securities law at Columbia University, also is highly critical of the government actions, saying shareholders are the ultimate victims.

"It is perversely inappropriate," he tells The New York Times. "You are adding injury to injury. All we're doing is punishing the shareholders more.

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Related Stories:

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Bove: US Assault on JPMorgan Is 'Coordinated From Above'

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The government is playing dirty pool in all its lawsuits against JPMorgan Chase, says ace bank analyst Dick Bove, vice president of equity research at Rafferty Capital Markets.
Bove,lawsuits,JPMorgan,bank
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2013-13-26
Thursday, 26 September 2013 08:13 AM
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