JPMorgan Profit Jumps 36%, Defying Expectations

A look behind the scenes at the omnipresent bank

(NEWSER) - Lloyd Blankfein likes to say he's "attained perfection," a plausible-sounding assertion now that Goldman Sachs has repaid its TARP funds and is dishing out mammoth bonuses. "I don’t want to put a cap on their ambition," the CEO says of his employees. "It’s hard for me to argue for a cap on their compensation." After visiting their inner sanctum at 85 Broad St., John Arlidge of London's Sunday Times offers a field guide to "the biggest swinging dicks in the financial jungle." More»

Market soars as investment profits give bank strong 3rd quarter

(AP) - JPMorgan Chase reported strong third-quarter earnings today as its thriving investment banking business more than offset rising consumer loan losses that the bank warned would continue. The company, the first of the big banks to report, showed a $3.59 billion profit, or 82 cents per share. But it also roughly doubled the amount of money it set aside for failed home and credit card loans in the quarter, saying credit losses would remain high "for the foreseeable future." More»

High-risk model hasn't changed, could lead to new crisis, says Reich

(NEWSER) - Goldman Sachs is back in the black, with trading and stock underwriting revenues at an all-time high—and that should scare you, former Clinton cabinet member Robert Reich writes in Salon. While Goldman's earnings may signal that the current crisis is abating, the bank hasn't modified high-risk strategies that forced the taxpayer to bail it out. And Goldman's latest success will only encourage competitors to do the same. More»

(NEWSER) - Goldman Sachs is expected to announce stunning profits for the second quarter tomorrow, inspiring jealousy on Wall Street and suspicion on Main Street, as taxpayers wonder whether they've been taken for a ride, reports the New York Times. The bank repaid its multibillion dollar government loan last month, and could show a profit of $2 billion for the 3 months, which in turn is expected to translate into $18 billion in salary and bonuses this year. How'd they do it? By taking risks no one else is willing to take, analysts tell the Times. More»

Analysis of gov't data reveals sources of the economic meltdown

(NEWSER) - Some 21 of the top 25 subprime lenders that triggered the global economic collapse were either owned or financed by banks that ended up needing bailouts, an analysis by the Center for Public Integrity finds. Among the backers, who make huge profits on the subprime business, were Lehman Brothers, Merrill Lynch, JPMorgan, Citigroup, Goldman Sachs, and AIG. More»