JPMorgan Chase, Citigroup Face Most Damage From Euro Debt Crisis
"Assuming some relatively worse case developments, it appears that Citigroup and JPMorgan Chase are at risk to the developments in Europe. No other American institution is," Bove wrote in a note, according to Reuters.
Citing filings from the International Financial Statistics Yearbook, released by the International Monetary Fund for the year 2010, Bove noted that Citigroup is at the biggest risk with exposure of $12.3 billion in Italy and $10.8 billion in Spain.
JPMorgan Chase risks write downs on $18.8 billion it loaned to Ireland, $12.2 billion to Italy and $12 billion to Spain, according to the filings.
The brokerage has outlawed any risks from limited exposure to either Goldman Sachs, or Morgan Stanley and termed the amount of exposure "not significant."
"The declines in the bank stock prices based on fears in this area (due to fear of financial crisis in Europe) seem to be meaningfully overdone," Richard Bove said.