JPMorgan Chase & Co.
) is facing probe from the Attorneys General and has received
subpoena for its possible involvement in the manipulation of the
London Interbank Offered Rate (LIBOR), according to a Reuters
Joint investigations by New York Attorney General Eric
Schneiderman and Connecticut Attorney General George Jepsen are
currently underway and in that course, subpoenas are being sent to
the Wall Street giants.
The subpoenas are sent while investigations are underway, to
probe any fraudulent and deceiving behavior on the company's
behalf, which might have played a role in the rigging of the LIBOR.
In addition to JPMorgan,
Deutsche Bank AG
) have also been subpoenaed in this New York-Connecticut joint
As a matter of fact, in addition to JPMorgan, several of the big
Bank of America Corp.
) are under the strict scrutiny of the regulators around the world
in connection to the LIBOR manipulation scam.
Based on estimates of rates at which banks find it appropriate
to borrow from each other, the LIBOR is determined. Since it is
used as a benchmark for several lending transactions around the
world, any manipulation would impact billions of users around the
Hence, the regulatory authorities are investigating the matter
thoroughly and plan to put forward an exemplary judgment so as to
put an end to such shrewd practices in the future, bring justice to
the sufferers and punish the wrongdoers.
Currently, we remain skeptical for JPMorgan and wait to see what
the future beholds. If it is found guilty in this LIBOR scam, it is
liable to be fined by authorities. Notably, in June, Barclays
already faced a fine of $450 million by certain U.S. and U.K.
authorities for rigging the rate.
JPMorgan, otherwise, boasts of a robust business diversification
and sturdy capital levels. Yet, pressure on net interest margin and
regulatory issues might mar the company s results in the upcoming
The shares of JPMorgan retain a Zacks #3 Rank, which translates
into a short-term Hold rating. Considering the fundamentals, we
have a Neutral recommendation on the stock.
BANK OF AMER CP (BAC): Free Stock Analysis
BARCLAY PLC-ADR (BCS): Free Stock Analysis
CITIGROUP INC (C): Free Stock Analysis Report
DEUTSCHE BK AG (DB): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis
To read this article on Zacks.com click here.