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Bank Of America And Citigroup Likely To Face Breakup Probe After Earnings Report

Jan 14, 2015 11:45 PM EST | By Michael Smith

Bank of America and Citigroup are likely to face questions about whether they would be better off if they were to both split into smaller pieces.

"If you're thinking about it for JPMorgan, you have to think about it for the other banks that are having more problems," Morningstar banking analyst James Sinegal told USA Today.

Sinegal referenced recent proposals made by other banking analysts advocating for the breakup of JPMorgan's assets and corporate structure.   

"It gets to the point where the banks are just too large," S&P Capital IQ analyst Erik Oja also told the newspaper. "I think they will get questions about it," he said of Bank of America and Citigroup.

In regards to the possibility of JPMorgan Chase being split, government probes have also led to heightened concern over the future of the banking institution.

The company is currently under investigation for alleged manipulation of Libor interest rates and misconduct in foreign exchange markets.

"Banks are under assault," JPMorgan Chase Chief Executive Jamie Dimon said, according to Reuters.

"We have five or six regulators coming at us on every issue."

The banking institution agreed to pay $1 billion in penalties last November over the alleged fraudulent activities related to foreign exchange markets.

Neither of the three banks have announced official plans to split.  

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