Thursday, July 26, 2012

Splitting the big banks: Guess who should go first



J.P. Morgan should split in two, as former Citi chair Sandy Weill has recommended for all big banks. In fact, it should go first. But before it does, the bank's board needs to address its own governance issues so the split goes well, Fortune writes.

It has been another tumultuous couple of weeks for J.P. Morgan (JPM). Events continued to raise questions about the veracity of company statements and the propriety of its motives and actions. Last week, a FERC filing in an energy manipulation investigation provided a "detailed, email-by-email summary" to back up its assertions that "J.P. Morgan repeatedly and deliberately insisted that unprivileged emails were privileged."

Bringing the investigation into sharper focus, the Financial Times recently reported that Wall Street banks like J.P. Morgan are becoming more heavily involved in the oil trading business and supplying oil to refiners…..

Don't stop now.  Go to http://management.fortune.cnn.com/2012/07/26/jp-morgan-sandy-weill-bank-split/?iid=SF_F_MPM

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