JPMorgan Chase says its second-quarter profits rose by 67% as the nation’s largest bank made more loans to customers and took advantage of higher interest rates and its recent acquisition of First Republic.
The nation’s 23 largest banks passed the Federal Reserve’s so-called stress tests this year, a sign that the nation’s banking system remains resilient despite the recent banking crisis that that led to the failure of three banks.
Customers of Chase’s online banking services were seeing double transactions, fees and/or payments in their accounts, with the situation not immediately being resolved as of late morning on Friday. Numerous Chase customers were posting on social media that their rent or bill payments were taken out of their accounts twice and reporting hold times with customer service approaching more than an hour.
Uncertainty continues to pummel the banking industry, despite assurances from financial regulators and bankers that the worst of the recent crisis is over and the banking system remains strong.
Regulators have barely written the epitaph for First Repbulic Bank, but investors on Wall Street have already moved onto speculating which bank might be the next to fail.
Europe’s painful inflation inched higher last month, extending the squeeze on households and keeping pressure on the European Central Bank to unleash another large interest rate increase.
Regulators seized troubled First Republic Bank early Monday, making it the second-largest bank failure in U.S. history, and promptly sold all of its deposits and most of its assets to JPMorgan Chase in a bid to stop further banking turmoil that has dominated the first half of this year.
First Republic Bank's stock slid again Wednesday and an ongoing rout has erased 60% of its value just this week on concerns about the bank’s financial health in the wake of two other bank collapses.
Asian shares mostly fell Thursday, echoing a decline on Wall Street, as worries about the U.S. banking sector and inflationary pressures weighed on investor sentiment.
First Republic Bank’s stock plunged Tuesday after it said depositors withdrew more than $100 billion during last month’s crisis, with fears swirling that it could be the third bank to fail after the collapse of Silicon Valley Bank and Signature Bank.
Shares of First Republic Bank fell another 47% Monday as investors remain uneasy about the bank’s financial condition even after a group of the nation’s largest financial institutions teamed up on a $30 billion rescue package.
Shares have advanced in Asia, tracking a rally on Wall Street after a group of big banks offered a lifeline to First Republic Bank, the lender investors had focused on in their hunt for troubles in the banking industry.