JPMorgan Chase's Fall: Good or Bad for Bank of America?

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

Usually when your competitor suffers some slings and arrows, it's good news for your company. The counterparties to JPMorgan Chase's $2 billion-plus in unexpected trading losses will win on those trades (assuming JPMorgan is a reliable counterparty, which it should be). However, bedraggled large banks Bank of America and Citigroup probably aren't celebrating too much at JPMorgan's expense. That's because a reputation loss for one of banking's strongest brands is bad for the industry as a whole. Anand explains.

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At the time thisarticle was published Anand Chokkavelu owns shares of Bank of America, Citigroup, Wells Fargo, and JPMorgan Chase. He also owns long-dated options on Bank of America and warrants on Citigroup, Wells Fargo, and JPMorgan Chase. The Motley Fool owns shares of JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup. The Fool owns shares of and has created a covered strangle position in Wells Fargo. Motley Fool newsletter services have recommended buying shares of The Goldman Sachs Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insightsmakes us better investors. The Motley Fool has a disclosure policy.

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