JPMorgan sees Fifth Third fraud charge as ‘surprising negative’

JPMorgan says Fifth Third (FITB) disclosure of fraudulent activity from a commercial borrower resoling in an impairment charge of $170M-$200M as a “surprising negative.” The news does not bode well for confidence in the bank’s risk management and the shares will “take a hit,” the analyst tells investors in a research note. JPMorgan keeps an Overweight rating on Fifth Third.