Why JPMorgan Is Headed Down the Toilet Todayhttp://www.fool.com/investing/general/2013/06/05/why-jpmorgan-is-headed-down-the-toilet-today.aspx Jessica Alling
June 5, 2013
After a quick spike in early trading, JPMorgan Chase (NYSE: JPM) investors quickly started dumping shares. While all of the big banks are struggling this morning, JPMorgan has just come to an agreement on some old business that came back to bite it in the butt. With economic news not helping the market overall, JPM and its compatriots are in for a long fight in trading today.
But the future is still uncertain, and banks are taking the brunt of the negative impact. But while the change in Fed policy may lead to investors pulling back in the market, slowing the recent big gains for banks, the possibility of higher interest rates should be an exciting long-term prospect for bank investors. Interest rate pressures have cut revenue growth and made it harder for banks to produce returns. We'll just have to wait and see how this plays out.
Down the drain