Is JPMorgan the Next Bank of America?

Updated

The following video is part of our "Motley Fool Conversations" series, in which senior analyst Anand Chokkavelu, CFA, discusses topics across the investing world.

JPMorgan Chase's $2 billion public relations hit last week dropped it a bit from its high horse. Investors should have known the potential danger long before JPMorgan reported those sizable losses on its "hedge" positions. But now that threats to JPMorgan's "fortress" balance sheet are in the news, how far has its reputation fallen? In the video below, Anand assesses whether JPMorgan is being lumped in with laggards Bank of America and Citigroup. The short answer is: No, not yet.

If JPMorgan's complex balance sheet isn't for you, operations get simpler still the smaller you go in banking. The Motley Fool featured one of these simpler banks in its brand-new free report: "The Stocks Only the Smartest Investors Are Buying." We invite you to download a free copy. To find out the name of the bank Buffett would probably be interested in if he could still invest in small banks, just click here.

At the time thisarticle was published Anand Chokkavelu, CFA, owns shares of Bank of America, JPMorgan Chase, BAC (LEAPS), and Citigroup. The Motley Fool owns shares of Bank of America, Citigroup, and JPMorgan Chase. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement