JPMorgan (JPM) is regularly mentioned as one of the few banks that has been able to emerge from the financial crisis in better shape than before. The bank was the only one not to post a loss during the crisis after all. But Mr. Market seems skeptical.

Breakingviews notes that the bank's stock (bank stock news) has been trading around book value since last summer, which represents a rebound of sorts. "To price the bank now at only a fraction more than breakup value seems overly cautious." Especially when you compare it to the likes of another consumer giant like Wells Fargo (WFC), which trades at 1.4 times book value. The reason: The investment banks (investment banking news).

While one might tout the diversification the unit offers, it is also fraught with uncertainties against the likes of Goldman Sachs (GS) and Morgan Stanley (MS). So it faces tough competition, an uncertain regulatory environment and historic skepticism. Investment banks have long been penalized with low multiples, something said to represent the uncertainty and risk inherent in the business. 

For more:
- here's the article via the New York Times

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