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00:00 Julie
Shares of JP Morgan slightly higher premarket after reporting earnings for the fourth quarter of 2025. The bank did take a $2.2 billion dollar charge connected to its takeover of Apple’s credit card business in the quarter and it’s not going to recognize the revenue from that for a while. Here were some of the biggest takeaways from CEO Jamie Diamond and the numbers is Yahoo Finance executive editor, Brian Sozzi. Sozz, what stands out to you in terms of what the company reported?
00:27 Brian Sozzi
Hey Julie. Well, I got three takeaways just getting off that reporter call for JP Morgan. Number one, the investment banking business for JP Morgan down 2% are year over year. It wasn’t a great quarter and you heard CFO Jerry Jeremy Barnum. He went through at length on this call that I was on explaining why that happened. Uh, he flat out said we were not impressed with this business, we didn’t execute.
00:53 Brian Sozzi
So I would be curious on how uh the other investment banks as they report this week, what those results look like. Is it a broader uh thing where deals are getting pushed out or is JP Morgan losing market share? So something to watch there. Number two, the stocks part of that business, the equity trading part of the business for JP Morgan up 40%. Of course
01:07 Brian Sozzi
Julie, that reflects the big gains we’ve seen in markets. So I would suspect if JP Morgan did good in this quarter and it did, that will probably be a positive call out at other investment banks as they report over the next few days.
01:16 Brian Sozzi
And then Julie, like you’ve been talking about all morning long, this this Fed independence issue. Um, you know, I was on a call earlier this morning with BNY CEO Robin Vince. He noted uh any challenge to the Fed independence, not a good thing, wouldn’t be good, likely for bond markets, heard that same vibe over from Jamie Diamond too on the media call around 8:00 today
01:31 Brian Sozzi
uh as well, Julie. And then lastly, uh I would just add this too in terms of hot takes, uh CFO Jeremy Barnum over uh JP Morgan talking about the potential credit uh credit card uh rate cap at at 10% uh potential. He said it would be bad for business. Uh no surprise there, I guess Julie, to hear a credit card executive say, if our rates are capped, it wouldn’t be good for business. But he didn’t want to quantify that impact.
01:54 Julie
Yes, I believe he said it would be very, very negative was the quote that I saw him use, um, on that front. So and he also said that it wouldn’t help consumers. So not only would it not help their profitability, he said it wouldn’t be helpful to consumers either, which I thought was interesting.
02:11 Brian Sozzi
Correct.