April 11 - A slump in fixed income trading and slowdown in mortgage loans slammed JPMorgan Chase's income. But CEO Jamie Dimon voiced optimism. Fred Katayama reports.
The latest quarter could be ugly for big banks. Net income plummeted at the largest bank, JPMorgan Chase. Dragging profit down: a slump in trading. Revenue from fixed income - one of its traditional strengths - fell sharply. Also hurting the banking bellwether: the slowdown in mortgage loans as homeowners finish refinancing. Loan originations fell 68 percent, and mortgage banking profit plunged by even more. That one-two punch from fixed income and mortgages offset progress Morgan had made in cutting expenses, a concern for investors amid the lawsuits and investigations plaguing the bank. Despite the weak results, CEO Jamie Dimon sounded optimistic, saying: "We have growing confidence in the economy - consumers, corporations, and middle market companies are in increasingly good financial shape and housing has turned the corner in most markets." Investors aren't banking on that enthusiasm, selling off the shares in early trading. Next up: Citigroup reports Monday; Bank of America on Wednesday.