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It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. Henry Ford


Those who surrender freedom for security will not have, nor do they deserve, either one. Benjamin Franklin
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The idea that you know what is true is dangerous, for it keeps you imprisoned in the mind. It is when you do not know, that you are free to investigate. ~ Nisargadatta Maharaj


Sunday 6 May 2012

Mike Mayo Smacks JPM with a Big Downgrade
Mike Mayo of CLSA downgraded JPM by not one, but two notches, to underperform from outperform. That’s quite a statement considering JPM is typically viewed as the strongest bank among its peers with CEO Jamie Dimon at the helm.
It’s not that Mayo thinks JPM is in shambles. In fact he calls it “best in class” but believes bank’s units would be more valuable if broken up. He writes, “Investors have a choice to own some of the parts but not all of them, and we prefer to mix and match a little more aggressively and stay more nimble given the evolving financial and political landscape.”
Mayo also cites increased macro uncertainty as another reason for the downgrade today. He writes in today’s note:  "We are downgrading JPMorgan Chase from Outperform to Underperform given increased macro uncertainty in the USA and macro/political uncertainty in Europe, estimates that are well below peer due to likely lower-than-average revenue for both markets and spread revenue, and a view that 1Q12 earnings are the best for some time."

Thanks to BDI  ,from Slopeofhope for alerting me to this 

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