Shares of JPMorgan Chase (JPM) declined slightly on Friday afternoon after President Donald Trump said he would order an investigation into the largest U.S. commercial bank’s relationship with the deceased, controversial financier Jeffrey Epstein.
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Trump Decries ‘Epstein Hoax’
Trump disclosed this in a post on Truth Social, noting that Democratic politicians are using the “Epstein hoax” to cause distractions from their “disastrous” shutdown and “all of their other failures.”
While the U.S. president intends to ask Pam Bondi, the country’s attorney general, and the U.S. Department of Justice to investigate “many other people and institutions,” JPMorgan Chase was the only institution directly mentioned in the post.
Trump listed several individuals to be covered by the investigation, including former U.S. President Bill Clinton, influential economist Larry Summers, and LinkedIn founder Reid Hoffman. The American leader described the Epstein controversy as a “Russia, Russia, Russia scam.”
“Records show that these men, and many others, spent large portions of their life [sic] with Epstein, and on his ‘Island.’ Stay tuned!!!” Trump wrote in the post.
Epstein Controversy Continues to Haunt JPMorgan
The Epstein case has been haunting JPMorgan for several years, with an internal review made public in 2023 indicating the bank’s involvement with the controversial figure.
Before he died in 2019, Epstein was awaiting trial on federal charges of sex trafficking of minors. He served a 13-month jail sentence in 2008 after he was found guilty of procuring a child for prostitution and soliciting a prostitute.
Trump’s newest comment comes several weeks after a New York Times report disclosed that Epstein was a long-time customer at JPMorgan and had over $200 million in his accounts.
According to the report, the controversial financier also played a role in helping JPMorgan arrange a significant acquisition, introduced the bank to executives who later became clients, and contributed to planning international business strategies. The report also claimed that the lender, for over a decade, ignored its officials’ warnings about Epstein’s wire transfers and cash withdrawals.
Is JPM a Buy, Sell, or Hold?
Across Wall Street, JPMorgan’s shares currently have a Moderate Buy consensus rating based on 11 Buys and six Holds assigned by 17 analysts over the past three months.
At $340.79, the average JPM price target implies about a 12% upswing potential from the current trading level.
