Rafferty Capital bank analyst Dick Bove spoke with FOX Business Network (FBN) about what’s ahead for JPMorgan Chase & Co. (NYSE:JPM) regarding their legal troubles. Bove said that the end of the legal woes for JPMorgan is still “3-5 years, maybe 5-7 years away.” When asked whether there will be a blanket settlement for the bank, Bove said, “it’s totally unlikely. There are just too many suits coming on too many different issues from too many different sources.”
Dick Bove on the end to JPMorgan Chase’s legal woes:
“I think they are 3-5 years, maybe 5-7 years away because there are literally thousands of lawsuits against JPMorgan Chase & Co. (NYSE:JPM) at the present time and each time it loses one. For example this Madoff thing is likely to set off all sorts of individual lawsuits against JPMorgan, so I think much as JPMorgan would like to just pay a billion here and two billion there and get rid of it all, they just can’t do it. They are going to be like an asepsis company or a tobacco company. They’re going to be in court for a lot a lot of time if you will.”
Dick Bove on whether there will be a blanket settlement for JPMorgan:
“It’s totally unlikely. There are just too many suits coming on too many different issues from too many different sources. Plus, the government really hasn’t gotten what it wants from JPMorgan Chase & Co. (NYSE:JPM). Remember, the government is doing this because it doesn’t believe that Too Big to Fail is acceptable. JPMorgan is the biggest bank in the United States, they want it smaller and JPMorgan is not getting smaller, so the government is going to keep going after them.”
