Analyst Suggests Banks Abandon New York
Infamous bank analyst Dick Bove believes that banks are treated so badly by the State of New York that they should abandon the location and move to alternate places. After the New York Attorney General filed suit against J.P. Morgan Chase & Co. (NYSE: JPM) on issues of the sales of mortgage-backed paper, Bove, who works at Rochdale Securities, wrote:
Management should consider the benefits of moving their headquarters elsewhere. Shareholders should not be forced to pay for continuous lawsuits because these banks are in New York.
If the industry was located in Charlotte, North Carolina it would not be facing constant hostility, it would be supported by a government that wants its business.
The financial services sector is already bleeding jobs in New York City. In the unlikely event that they take Bove's advice, that would worsen.
Douglas A. McIntyre
Filed under: 24/7 Wall St. Wire, Banking, Law Tagged: JPM