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Wall Street Banks Post Strong Q4 on Trading as Shares Slip on Risk Concerns

Investor reaction cooled due to reliance on trading revenue.

Overview

  • Bank of America reported $7.6 billion in fourth‑quarter profit as trading revenue rose 10% to $4.5 billion.
  • Wells Fargo posted $5.36 billion in net income and booked $612 million in severance costs as it continued cost-cutting efforts.
  • Citigroup took a $1.2 billion pre‑tax loss tied to the sale of its Russia unit even as investment‑banking revenue jumped 35%.
  • JPMorgan remained the sector’s pace‑setter but faced costs related to taking over Apple’s credit‑card business from Goldman Sachs.
  • Analysts highlighted that earnings leaned on volatile trading while political proposals such as a temporary 10% cap on credit‑card rates pose new risks.