>> The return of stock market volatility may be making investors sea sick. But it's translating into cold hard cash for some of Wall Street's biggest banks. First quarter earnings, out Friday, from JP Morgan Chase, Wells Fargo, and Citigroup, all saw a boosts thanks to higher equity trading. But confusion about how much each bank will benefit from last year's Trump tax cuts hurt JP Morgan Chase shares the most.
The lower the tax, the higher the profit. Reuters Breakingviews columnist Antony Currie.>> All of these companies have got various issues this quarter, right? So I think the tax rate was one of them, so I think a lot of analylists were expecting a some what lower actual tax revenue.
I think they said it was 22%, some analysts were expecting 18 based on I think company guidance. Again that's part of the problem. Everyone's still trying to work out exactly how this fits.>> Shares of JP Morgan Chase lost nearly 3% Friday. Less for Citigroup. But wells Fargo was the biggest loser for a totally different reason.
>> You've got two. Big things going on, which may or may not be related, just to confuse matters. So one is, the overhang from the fake account scandal of 2016, which as grown and grown as they found, A, more accounts that may have been opened fraudulently by bankers.
And B, as it's expanded to encompass insurance, autos and other things.>> Wells Fargo confirmed Friday it's facing a $1 billion fine by two regulators for those auto insurance and mortgage lending abuses. And CEO Tim Sloan warned that he may uncover even more misdeeds. The weakness in bank shares dragged the entire stock market lower on Friday.