Lackluster fixed income trading bit into the profits of JPMorgan Chase and Goldman Sachs but not by as much as feared. Fred Katayama reports.
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Lackluster securities trading bit into profit at the U.S.' most powerful commercial and investment banks.
JPMorgan Chase's quarterly income and revenue fell from the prior year, dragged down by lower revenue from fixed income and equities trading and mortgage lending. But trading revenue fell less than the nation's largest bank had earlier predicted.
The report comes two weeks after the bank announced that CEO Jamie Dimon was suffering from throat cancer. In a conference call today, he said he "felt great" and would stay engaged with business as he underwent cancer treatment. As if to show he's actively involved, Dimon was tad chattier than his usual loquacious self in his earnings statement, saying, "Toward the end of the second quarter, we saw encouraging signs across our businesses ... we have confidence in the long-term growth of the economy."
Because of its size and vast breadth of its businesses, JPMorgan is seen as a bellwether for the economy.
ISI analyst Glenn Schorr said, it's the "Same old JPMorgan that we're used to - good businesses producing strong returns with more to come."
At Goldman Sachs, profit and revenue rose but would've been higher had fixed income trading revenue not fallen 10 percent. That was less than the drops suffered by JPMorgan and Citigroup. Strong performances in Goldman's investment banking and investing and lending businesses offset the poor performance by what was once one of its strongest units.
With results of both banks easily surpassing expectations, shares of JPMorgan and Goldman rose at the start of trade.
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