Rafferty Capital bank analyst Dick Bove spoke with FOX Business Network’s (FBN) Liz Claman about his thoughts surrounding JPMorgan Chase’s (JPM) mortgage settlement. Bove said, “I think it is going to cost more than $11” billion to settle the mortgage probes. Bove went on to say, that the settlement will most likely be around $15 billion versus $11 billion.
On whether the JPMorgan settlement will be over $11 Billion:
“I would take the over more than the under. I think that basically we are looking for a big number because that’s what JPMorgan really wants…yeah I think that JPMorgan really wants to walk away saying that they have gotten rid of all the problem they had with Washington, not just on mortgages, but on a much wider variety of issues and to do that I think it is going to cost more than 11.”
On the amount of money that Bove thinks JPMorgan will end up paying in the settlement:
“I would say more in the 15 area would be something that I would assume is correct, because remember this company has 2.4 trillion dollars in assets, it has 196 billion dollars in common equity and it has, you know, a cash position which is, you know, a couple of hundred billion. So it’s not going to harm the company financially to make that payment. It’s just that I just don’t think that it’s right to make that payment.”
Fox Business Network