Justice Dept. Subpoenas JPMorgan, Bank of America in 'Debanking' Probe
JPM sits 18% above its 52-week low of $262.71.
Summary
The Justice Department has issued subpoenas to major banks, including JPMorgan Chase and Bank of America, investigating allegations of improperly closing customer accounts for political reasons. This action, led by Jeanine Pirro's prosecutors, significantly escalates President Trump's campaign against alleged discrimination by financial institutions. The involvement of the Justice Department, moving beyond previous regulatory reviews by the OCC, poses a material legal and reputational risk for both banks, potentially leading to substantial fines and increased compliance burdens. The market will be watching for further details on the scope and findings of this federal probe.
At the time of this announcement, JPM was trading at $311.01 on NYSE in the Finance sector, with a market capitalization of approximately $828.3B. The 52-week trading range was $262.71 to $337.25. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.