JPMorgan Chase & Co. has advised shareholders to vote against any proposal that proposes a splitting up of the bank, since an internal 2015 review had concluded that such a move would go against shareholder’s interest.
JPMorgan Chase & Co have urged its shareholders to vote against the appointment of a committee tasked to explore the splitting up of the bank, reiterating the notion that such a move would be against their best interest.
According to a regulatory filing, Bartlett Naylor, a shareholder, plans to propose such a proposal in the upcoming annual general meeting (AGM) of the company on May 17.
Bartlett Naylor wants a split within the company with one focusing solely on consumer lending and other bank related business while the other will focus on investment banking related operations.
In recent years, Naylor, who works for the NPO Public Citizen, has filed nearly identical proposals for the Citigroup and Bank of America in the past.
JPMorgan is of the opinion that forming a special committee to look into the possibility of a vertical split is not necessary since in 2015 it had done an extensive review which found that such a move would negatively affect shareholder’s value.
JPMorgan Chase and Co is the biggest bank by assets and has been deemed as “too big to fail” by U.S. regulators.
Risky behavior on Wall Street has remained a hot topic in the U.S. Presidential debates with Bernie Sanders, the Democratic candidate, calling for breaking up big banks and criticizing Hillary Clinton for being too close to Wall Street.
Sanders has pledged to create a list of too-big-to-fail list of commercial banks, shadow banks and insurance companies with the first 100 days of taking office, if he is elected. He plans on breaking up these institutions in the first year.
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