JPMorgan Pays US$920mn To Settle SEC Allegations
News : US financial services company JPMorgan Chase has admitted wrongdoing in its handling of the London Whale trading loss scandal, according to the Washington Post. The company is to pay US$920mn to the US Securities and Exchange Commission, which refused to allow the bank to settle its breach of securities law without explicitly acknowledging wrongdoing. Analysts have characterised JPMorgan ' s admission as a significant symbolic victory for the commission.
BMI View: We believe that the end to US household deleveraging over the next few quarters will mean continued sustainable growth in the US banking sector, and are forecasting both asset and client loan growth to accelerate in 2013 and 2014. The US nonfinancial corporate sector has long since concluded its deleveraging process, and we believe that an improving housing sector and greater consumer borrowing demand will lead to faster loan growth.