Though Chase has been in better shape over this economic down turn both banks profitable quarters relied on their investment banking activities.
Chase Bank reported 3.3 billion dollars for the first quarters profit. Bank of America came in right behind them with 3.2 billion dollars. 3/4's or 75% of Chase Bank profits came from trading and investment banking activities and 2/3 or about 65% of Bank of Americas profits came from their newly found investment banking operations. This profitable Merrill Lynch deal has beat the overall outside consensus and expectations. Just goes to show you that old Ken Lewis knew and still likely knows what he is talking about.
Though it is the new guy Brian M. over there amidst the executive offices of Bank of America who is wiping the sweat of his forehead as the new CEO of Bank of America.
The New CEO, Brian T. Moynihan of BoA is doing a great job in my opinion. He is making some great decisions as the banking giant's leader.
His focus on image, loss mitigation, referral networking with the new investment banking operations and corporate banking division, and what ever else he is doing is certainly getting the job done (at least from what I have seen).
My finance hat goes off to him, as well as Ken Lewis who deserves some credit from the media, and of course the genius over there at Chase Bank, Mr. Diamond.
The stock prices of these two banking giants were unfortunately blocked and pushed down due to the outrageous claims of mortgage backed securities fraud against Goldman Sachs. This claim and lawsuit courtesy of the SEC.
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