Dick Bove: JPMorgan Settlement Likely to Be Closer to $15 BillionVW Staff
Rafferty Capital bank analyst Dick Bove spoke with FOX Business Network’s (FBN) Liz Claman about his thoughts surrounding JPMorgan Chase & Co (NYSE:JPM)’s mortgage settlement. Bove said, “I think it is going to cost more than $11” billion to settle the mortgage probes. Bove went on to say, that the settlement will most likely be around $15 billion versus $11 billion.
On whether the JPMorgan settlement will be over $11 Billion:
“I would take the over more than the under. I think that basically we are looking for a big number because that’s what JPMorgan really wants…yeah I think that JPMorgan really wants to walk away saying that they have gotten rid of all the problem they had with Washington, not just on mortgages, but on a much wider variety of issues and to do that I think it is going to cost more than 11.”
On the amount of money that Bove thinks JPMorgan will end up paying in the settlement:
“I would say more in the 15 area would be something that I would assume is correct, because remember this company has 2.4 trillion dollars in assets, it has 196 billion dollars in common equity and it has, you know, a cash position which is, you know, a couple of hundred billion. So it’s not going to harm the company financially to make that payment. It’s just that I just don’t think that it’s right to make that payment.”