Bond Trading Is Good To JPMorgan Chase. Mortgages, Not So Much : Planet Money The first-quarter profits at JP Morgan Chase, the second biggest bank in America, make it look like a big Wall Street investment bank that happens to have a gigantic retail banking operation attached to it.
NPR logo Bond Trading Is Good To JPMorgan Chase. Mortgages, Not So Much

Bond Trading Is Good To JPMorgan Chase. Mortgages, Not So Much

The first-quarter profits at JPMorgan Chase, the second biggest bank in America, make it look like a big Wall Street investment bank that happens to have a retail banking operation attached to it.

The bank said today that it made $3.3 billion in profits in the first three months of this year.

Most of that money — $2.5 billion — came from its investment banking division, which made a lot of money trading bonds, the company said.

The bank's "retail financial services" group, which includes retail banking, mortgage banking and real estate portfolios, lost $131 million during the quarter, driven by big losses in real estate. The bank also set aside $2.3 billion "for litigation reserves, including those for mortgage-related matters."

"Obviously, the mortgage area has been a very confusing, complex area," said Jamie Dimon, the bank's CEO, according to Dow Jones Newswires.