NEW YORK (TheStreet) -- J.P. Morgan Chase (JPM) fell Monday after Spanish Internet startup Let's Gowex SA filed for insolvency after it announced it had falsified its accounts for a minimum of four years.
J.P. Morgan's Euroland Focus fund had 2.9% of its holdings invested in Gowex as of May 31, and its Europe Focus fund had 2% of its portfolio tied to the stock.
Gowex founder and CEO Jenaro Garcia resigned on July 5 after he took responsibility for the accounting fraud. The stock fell 60% last week after short seller Gotham City Research said the company inflated revenue.
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The stock was down 1.19% to $56.45 at 11:35 a.m. on Monday.
Separately, TheStreet Ratings team rates JPMORGAN CHASE & CO as a "buy" with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate JPMORGAN CHASE & CO (JPM) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."