Trading revenues grow at JPMorgan Chase and Citigroup, and JPMorgan CEO Jamie Dimon says he sees the U.S. economy improving. Fred Katayama reports.
Oops! JPMorgan Chase's earnings came out hours earlier than scheduled from a third-party website. The U.S.' largest bank swung to a profit of $5.6 billion. But $1 billion in legal expenses cut into it, and sluggishness in home loan originations slammed its mortgage banking profit. There was a bright spot. Equities trading revenue slipped, but a strong performance in currency trading and emerging markets boosted fixed income revenue 2 percent. JPMorgan CEO Jamie Dimon, who is battling throat cancer, expressed optimism about the U.S. economy, saying, "While challenges remain in the global economic recovery, the U.S. economy is an exception, showing signs of steady improvement." Profit improved at Citigroup and Wells Fargo. Like JPMorgan, Citigroup grew its trading revenue. To boost profitability, the bank said it's closing its consumer banking operations in 11 markets including Japan. Separately, Citi said it detected fraud worth $15 million and illegal conduct at its Mexican banking unit. Wells, the U.S.' largest mortgage lender, expanded its mortgage banking income. But like JPMorgan, originations plummeted from the prior year. Shares of Wells Fargo and JPMorgan lost ground as Citi's stock rose.