A surge in trading revenue pumped up quarterly profit at JPMorgan Chase and Bank of America, but earnings fell at scandal-plagued Wells Fargo. Fred Katayama reports.
A huge profit surge at the two biggest U.S. banks, and they can thank the spike in stock prices following Donald Trump's election for that. Fatter revenue from stock and bond trading helped lift JPMorgan Chase's profit nearly 24 percent. JPMorgan Chase CEO Jamie Dimon voiced optimism for the future, saying, "The U.S. economy may be building momentum." Stronger trading revenue boosted Bank of America's earnings by almost 50 percent. Sharp cost cutting also helped. The rise in interest rates didn't come early enough to impact its bottom line. But the bank said that rise will help significantly expand its net interest income in the first quarter this year. Phoenix Financial Services chief market analyst Wayne Kaufman said expect more positive surprises from banks. SOUNDBITE: WAYNE KAUFMAN, CHIEF MARKET ANALYST, PHOENIX FINANCIAL SERVICES, (ENGLISH) SAYING: "When you see they have less of a regulatory burden, these companies make more money when interest rates go up, and they make more money when the economy goes up." But scandal-plagued Wells Fargo was a party pooper Friday. Its profit fell for the fifth straight quarter. Next week, investors will get results from Goldman Sachs, Morgan Stanley, and Citigroup.