JPMorgan Chase (JPM) stock fell 4.08% to $337.75 on Thursday after reports that Senate Democrats plan to investigate its Epstein ties. The selloff nearly erased the shares’ entire post-election gain.
The bank settled Epstein lawsuits for $365 million in 2023, without admitting wrongdoing. Shareholders of America’s largest bank now face a Senate committee that could demand its internal records by subpoena.
Why a New JPMorgan Epstein Probe Is Hitting the Stock
Staff on the Senate Finance Committee plan to examine how senior JPMorgan executives handled the bank’s ties to Jeffrey Epstein, according to a source cited by CNBC.
Epstein, a convicted sex offender and former client, died in federal custody in 2019.
The source said the focus will be Mary Erdoes, who runs the bank’s Asset & Wealth Management business. Sen. Ron Wyden, an Oregon Democrat, is expected to chair the committee. Neither has announced the probe.
Control of the committee would let Democrats compel bank records, internal emails, and compliance files, Anadolu reported.
Wyden has pursued the case since 2022. His November 2025 memo found JPMorgan reported about $1.3 billion in suspicious Epstein transactions to regulators after his death. While he was alive, the flagged total was just over $4.3 million.
JPMorgan says the US government held damning information on Epstein that it never shared with banks.
“We regret any association we had with him, but we did not help him commit his crimes,” the bank stated.
Do Analysts Still Back JPMorgan After the Selloff?
The stock had closed Wednesday at $352.11, up 4.18%, after Democrats won both chambers of Congress. It gave out almost all of these gains Thursday.
Still, analysts have not turned against it. Of 19 analysts tracked by TipRanks, 10 rate it Buy and nine rate it Hold, with no Sell ratings. Their average 12-month target of $373.81 sits about 10.6% above Thursday’s price.
The probe lands weeks after the bank’s third-quarter earnings miss. Wyden’s words also reach beyond one lender.
“From the banks that helped cover up Epstein’s crimes… they will be forced to answer to the Senate Finance Committee for their role in hurting the American people,” Wyden indicated.
Democrats also plan probes into private equity, data center taxes, and artificial intelligence. The plans follow the Dow’s 1,500-point rally on the Democratic win. The new majority takes control in January.
