CNBC.com – By John Melloy – June 13, 2012
Investors fear that Jamie Dimon and JPMorgan may suffer the same fate as Lloyd Blankfeinand Goldman Sachs following the former CEO’s testimony before the Senate: a soiled reputation and an underperforming stock.
In April 2010, following a marathon grilling in front of the Senate’s Permanent Subcommittee on Investigations, shares of Blankfein’s Goldman Sachs have underperformed the market and the rest of the financial industry.
Part of the reason is the curtailment of trading activities by the bank to avoid further scrutiny (and another trip before Congress) and loss of banking business because of the reputational hit that the hearing caused.
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