JPMorgan Stock Erases Post-Election Gains on Epstein Probe News

Shares of JPMorgan Chase (JPM) dropped 4.08% to $337.75 on Thursday, following reports that Senate Democrats are planning to investigate the bank's connections to Jeffrey Epstein. This decline wiped out nearly all of the stock's gains since the election.

In 2023, the bank settled Epstein-related lawsuits for $365 million without admitting any wrongdoing. Now, shareholders of the largest bank in the U.S. face the prospect of a Senate committee that could use subpoenas to obtain internal records.

Why the New JPMorgan Epstein Probe Is Affecting the Stock

According to a source cited by CNBC, staff members on the Senate Finance Committee intend to look into how senior executives at JPMorgan dealt with the bank's relationship with Epstein.

Epstein, a former client who was a convicted sex offender, passed away in federal custody in 2019.

The source indicated that the inquiry will center on Mary Erdoes, who heads the bank's Asset & Wealth Management division. Sen. Ron Wyden, a Democrat from Oregon, is expected to lead the committee. Neither has formally announced the investigation.

NEW: Sen. Ron Wyden’s Finance Committee staff intend to dig into JP Morgan’s relationship with Jeffrey Epstein, with a particular focus on the conduct of high ranking executives and their handling of the bank’s relationship with the disgraced financier, according to a source…

— Eamon Javers (@EamonJavers) November 5, 2026

Taking control of the committee would enable Democrats to compel the bank to turn over records, internal emails, and compliance files, as reported by Anadolu.

Wyden has been pursuing this matter since 2022. His memo from November 2025 determined that JPMorgan reported approximately $1.3 billion in suspicious Epstein-related transactions to regulators after his death. While Epstein was alive, the total flagged was just over $4.3 million.

JPMorgan maintains that the U.S. government held damaging information about 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 Support JPMorgan After the Selloff?

The stock closed Wednesday at $352.11, up 4.18%, following the Democrats' victory in both chambers of Congress. On Thursday, it surrendered nearly all of those gains.

Despite the drop, analysts have not turned against the stock. Among 19 analysts tracked by TipRanks, 10 rate it Buy and nine rate it Hold, with no Sell recommendations. Their average 12-month target of $373.81 is approximately 10.6% above Thursday's closing price.

The probe comes just weeks after the bank's third-quarter earnings shortfall. Wyden's comments also extend beyond a single 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 are also planning investigations into private equity, data center taxes, and artificial intelligence. These plans follow the Dow's 1,500-point surge tied to the Democratic win. The new majority assumes control in January.