The CFTC (Commodity Futures Trading Commission) imposed fines on big U.S. banks. The regulatory body has ordered Goldman Sachs (NYSE:GS), JPMorgan Chase (NYSE:JPM), and Bank of America (NYSE:BAC) to pay $53 million as a penalty for failures related to swap data reporting.
In particular, CFTC slapped Goldman Sachs with a $30 fine for its failure to diligently supervise a wide range of its swap dealer activities. Goldman violated multiple sections of the CFTC and Commodity Exchange Act regulations. Further, the financial services giant was told to take steps to develop a remediation plan.
At the same time, JPMorgan Chase will pay a fine of $15 million for violations related to swaps reporting. Meanwhile, Bank of America will shell out $8 million for not adhering to swap reporting obligations.
Investors should note that these large banks often come under fire for failing to comply with reporting obligations. Earlier, Goldman Sachs and JPMorgan Chase were fined for record-keeping lapses. While these penalty amounts seem insignificant for these corporations, they raise concerns regarding compliance and breaches. Against this backdrop, let’s examine the Street’s projections for these top U.S. banks.
Which Bank Stock is Best to Buy Now?
TipRanks’ Stock Comparison tool shows that Wall Street analysts are cautiously optimistic (providing a Moderate Buy consensus rating) about these bank stocks. These financial institutions are expected to benefit from higher interest rates and modest loan improvements. However, challenges from rising deposit costs and lower activity in the investment banking segment remain a drag.
Nonetheless, JPM stock carries an Outperform Smart Score of nine on TipRanks, implying it is more likely to beat the broader markets.
Investors should know that TipRanks’ Smart Score tool is an exclusive quantitative stock scoring system. This system assigns a score ranging from one to ten, with ten being the best. The scoring is based on an evaluation of eight key factors, including Wall Street analysts’ recommendations, corporate insider’s transactions, technical and fundamental analysis, and hedge fund transactions, among other criteria.
While JPM stock has an Outperform Smart Score, Bank of America stock represents higher upside potential (based on analysts’ average price target) from current levels.
