NEW YORK ( TheStreet) -- Two weeks after Reuters reported that Deutsche Bank had applied to be a prosecution witness in the Libor scandal investigation, Deutsche Bank analyst Matt O'Connor on Sunday lowered his rating for JPMorgan Chase (JPM - Get Report), in part because of the Libor scandal investigation.
Among the "regulatory/legal" matters cited by O'Connor in justifying his downgrade of JPMorgan's shares from a "Buy" rating to a "Hold" rating, were "LIBOR, VAR
Reuters reported on July 15 that Deutsche Bank could "escape with a lighter penalty than other banks in Europe if investigators impose fines in the wake of an interest rate-rigging scandal," since the bank had applied to cooperate with authorities in their investigation under the leniency programs of the European Union and in Switzerland," according to unnamed sources.
JPMorgan's shares were down over 2% in early afternoon trading, to $36.08.The company on Friday announced the realignment of its wholesale businesses and several changes in the company's top management, including the promotion of current CIO head Mat Zames and Frank Bisignano -- currently in charge of the company's mortgage operations -- to co-chief operating officer positions, beginning in early 2013. Following a meeting with JPMorgan Chase CFO Douglas Braunstein on Friday, O'Connor said that the company had "delayed some reinvestment of its CIO securities