In the following video, Fool.com banking analyst Matt Koppenheffer explains the impact that politics may have on the banking system going forward. JPMorgan Chase's $7 billion loss from its London Whale debacle, for example, created a lot of political backlash, but Matt says there might be an opportunity at hand for investors, who can buy in as pessimism results in lower valuations for bank stocks.

On the other hand, Matt says, unfolding regulations such as those from Basel III make it difficult to predict how bank fundamentals will be affected in the long term.

Check out the video for further details.


With big finance firms still trading at deep discounts to their historic norms, investors everywhere are wondering if this is the new normal, or whether finance stocks are a screaming buy today. The answer depends on the company, so to help figure out whether JPMorgan is a buy today, I invite you to read our premium research report on the company today. Click here now for instant access!

The article The Biggest Weight on Big Banks Today? originally appeared on Fool.com.

Matt Koppenheffer has no position in any stocks mentioned. The Motley Fool owns shares of JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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