So says JPM’s Daniel Pinto
- JPM will be left with traditional bank commodities business
- Not a lot of growth in fixed income this year but sees stability
- Market revenue down around 15% year to date
The news comes as they announce that 8000 jobs will go in mortgage and retail banking
Jamie Dimon just hitting the wires also at an ‘investor day’ and says that;
“We had a little bit of a tough time last year”
Shelling out nearly $20bn in fines is a bit more than a “tough year”
He also says;
- Mortgages have been the most painful business ever
- Mortgages are a critical product for Americans and we’re going to stay in it
There’s several factors to consider. One, coming out the other side of the crisis is bound to reduce volatility and thus trading volumes. Two, regulations are causing banks to cut a big chunk of the business they used to cream money from. Three, constantly getting fined isn’t exactly good advertising.
The banks have had it good, by fair means and foul, but they are now being made to concentrate on core business. I should think we’ll be seeing similar stories unfold over the next few earnings reports