JPMorgan Chase officials responded to speculation from investors and analysts earlier this week, offering explanations for allegations of a possible break up induced by new regulations.
"JPMorgan has been under stress and strain, more than most, and that's a burden we're bearing, and we've got to get out of that," chief executive Jamie Dimon said during a company meeting, according to the New York Times.
"Our mix obviously works for the client. That is the best judge," he said of JPMorgan Chase's organizational approach.
New regulations on banking institutions promoting cuts on expenses have called into question the future of the company, which is currently the largest bank in the United States. The $2.6-trillion-worth institution is said to undergo structural and operational compression in coming years, with some analysts claiming a break up of the bank is likely.
Goldman Sachs analysts have published research notes on the matter. The company's head analyst proposed that JPMorgan Chase be broken up into four separate companies. Its branch network alone would be priced at $100 billion.
Investors are said to have probed the bank's leadership about the Federal Reserve's possible responses.
"Are we missing the forest for the trees?" Evercore ISI Institutional Equities analyst Glenn Schorr asked after the first presentation of the day, the New York Times also reports.
"You're optimizing, but is the Fed going to look at that and say, 'I don't get it, how many ways do we need to tell you to shrink, both in size and complexity?' "
