>> The Wall Street trading frenzy following the surprise election of Donald Trump as president of the United States, turning into a windfall for some of the nation's biggest banks as seen in end of the year results released Friday. Both JPMorgan Chase and Bank of America, highlighting a post-election bump for cash bonanza.
But, hold on says Reuters Breaking News Associate Editor, Antony Currie. You have these so-called animal spirits that are unleashed by Trump winning the election. And that as a result, you had a lot of people engage in trading. You compare it to the previous three months, it's actually a lot less trading revenue.
So, I think that a little bit bogus and I think there probably was more revenue coming in. Certainly compared to the previous years fourth quarter, but let's not overdo it here.>> For sure, trading wasn't the only reason JP Morgan easily beat forecasts. The country's largest bank also enjoying gains across its consumer business, think more bank deposits, home loans and higher credit card spending.
At Bank of America, it was a different story, trading revenues aside, profit gains came largely on the back of plans to cut spending by $5 billion by next year. But not all banks are doing as well. Profits at Wells Fargo, tumbling for the fifth straight quarter. The nation's third largest bank, still suffering from multiple lawsuits and fewer customers after being accused of opening 2 million bogus accounts.
Well Fargo's stock, however on the rise along with the rest of the group ever since the election bank stocks have been on the go. Surging nearly 20%, politics isn't the only reason. Now that the federal reserve is raising interest rates, banks will be able to charge more for loans to consumers and businesses.
For investors that only means one thing, ka-ching.