Why JPMorgan Chase's Earnings Won't Be That Bad
The following video is part of our "Motley Fool Conversations" series, in which senior analyst Anand Chokkavelu, CFA, discusses topics around the investing world.
With the news furor around JPMorgan Chase's $2 billion-plus in trading losses, you'd think its second-quarter earnings would be dreadful. The losses will hurt (especially if they are double or triple that initial $2 billion figure), but don't bank on dreadful earnings. Reuters is reporting that JPMorgan has booked gains to the tune of $1 billion by selling profitable securities, tax consequences be darned. In the video, Anand explains how this is yet another perfectly legal trick up the sleeves of big banking.
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At the time this article was published Anand Chokkaveluowns shares of Bank of America, JPMorgan Chase, and Citigroup. The Motley Fool owns shares of Bank of America, Citigroup, and JPMorgan Chase.Motley Fool newsletter services recommendGoldman Sachs. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.