Wells Fargo & Co (WFC), Bank of America Corp (BAC): Is This the Perfect Time to Buy JPMorgan Chase & Co. (JPM)?

Page 2 of 2

Wells Fargo & Co (NYSE:WFC)‘s stress-test results weren’t that far off from JPMorgan Chase & Co. (NYSE:JPM)’s, and its proposed capital actions were unconditionally approved. Bank of America Corp (NYSE:BAC)‘s stress-test results were in the neighborhood of JPMorgan’s, as well. Whatever Dimon and his team need to fix, they will. In a statement reacting to the Fed’s decision, Dimon himself said: “JPMorgan Chase is fully committed to meeting all of the Fed’s requirements.”

Regarding the Senate questioning over the superbank’s handling of the London Whale, what you’ve already seen is probably all you’re going to get. That is, it was a lot of political theater. We’re going on a year out from when news of the botched trade broke, and the bank seems to be at the tail end of any losses.

The fact is, JPMorgan Chase & Co. (NYSE:JPM) was never in any danger from the deal, and while $6 billion sounds like a lot, for a bank with trillions in assets, it really isn’t. This too shall pass.

Finally, the OCC’s internal downgrade, revealed more than six months after the fact, doesn’t really change anything. From the perspective of the federal government action, there’s nothing necessarily new going on here. It just so happens word leaked out about this scorecard change now, and the news is piling onto other bad news.

Foolish bottom line
None of the three items mentioned above relates to JPMorgan Chase & Co. (NYSE:JPM)’s fundamentals. The bank you owned shares in last Thursday — before this wave of bad news began to break — is the exact same bank you own shares in today. And with the stock price currently depressed, again for no reason having to do with company fundamentals, if anything, now is the perfect time to buy.

The article Is This the Perfect Time to Buy JPMorgan? originally appeared on Fool.com and is written by John Grgurich.

Fool contributor John Grgurich owns shares of JPMorgan Chase. Follow John’s dispatches from the bleeding heart of capitalism on Twitter @TMFGrgurich. The Motley Fool recommends Wells Fargo. The Motley Fool owns shares of Bank of America, JPMorgan Chase, and Wells Fargo.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2