The heads of JPMorgan Chase & Co and Bank of America Corp on Friday indicated that this month has not been as good for business as the first two months of the year, underscoring worries on Wall Street about the state of the banking industry.
In an interview with CNBC following a meeting at the White House with US President Barack Obama, JPMorgan chief executive Jamie Dimon said this month has been “a little rough.”
Bank of America chief executive officer Ken Lewis echoed that sentiment in a separate interview with CNBC.
The news sent bank stocks sharply lower in afternoon trading.
Bank of America shares dropped US$0.24, or 3.2 percent, to finish at US$7.34, while JPMorgan shares lost US$1.70, or 5.8 percent, to finish at US$27.40.
Just a few weeks ago, word that banks were performing better than expected so far in the quarter helped spark a massive rally that has sent the Dow Jones industrials up 17 percent in three weeks.
Investors have remained cautious about the stability of the banking industry, mindful of the problems that still exist. But the initial reports were fodder for a market hungry for a sign that the nation’s biggest banks could be on more solid footing than previously thought.
“Things are going to be more difficult for awhile and I think the general sense was we’re making loans to qualified people,” said US Bancorp’s Davis during a TV interview following the meeting. “There are less qualified people but we need to find a way to further that opportunity.”
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