Mega-Banks Wilt! Can Markets Hold if Financials Fold? from Money and Markets

2012: What's the 'real' truth?

Source: Money and Markets (email Newsletter, October 14, 2014)

MARKET ROUNDUP

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-.08 to 2.206%

Gold

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$3.79 to $81.95

Today was earnings day for the biggest mega-banks on the block — and judging by the market reaction, they failed to inspire investors!

Let’s start with JPMorgan Chase (JPM, Weiss Ratings: B+). The firm reported earnings of $5.6 billion, or $1.36 a share. That was a big swing from the year-earlier loss of $380 million, or 17 cents a share. But it missed the average estimate of $1.38.

One key problem is mounting legal costs — something all banks are dealing with due to multiple, multinational investigations and settlements. Those sliced $1 billion, or 26 cents a share, off JPM’s bottom line.

It’s also facing lackluster capital markets activity, with revenue from…

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