“This is why you want these companies to have plenty of capital,” St. Louis Fed President James Bullard said in another Reuters report. “I would back my colleague (Dallas Fed President) Richard Fisher in saying that we should split up the largest banks.”
While JP Morgan licks its wounds, other large banks could be capitalizing on the losses. A dozen banks, including Goldman Sachs (NYSE: GS) and Bank of America (NYSE: BAC), may gain a profit of $500 million to $1 billion on credit default swap trades that JPMorgan’s Chief Investment Office was dumping, reports the Wall Street Journal.
Financial Select Sector SPDR
For more information on the financial sector, visit our financial category.
Max Chen contributed to this article.