Wall Street banks reserve funds, see uncertain outlook and competition for deposits

JPMorgan Chase CEO Jamie Dimon said, “The U.S. economy is still strong, consumers are still spending too much cash, and businesses are still spending too much cash. Stay healthy,” though he said he didn’t yet know “the ultimate impact of the coming headwinds.” The bank said its macroeconomic outlook had deteriorated moderately, “reflecting a mild recession in central conditions.”

JP Morgan, Bank of America, 243267 Citigroup Company (NYSE: 500C) and Wells Fargo reported profits from up 6% to down %. The strength in trading helped offset a decline in investment banking, while higher interest rates from the Federal Reserve helped revenue. “Solid bank earnings today, with net interest income driving earnings, credit reserves rising significantly year-over-year, investment banking fees remaining low – all These are largely a reflection of interest rates and the economic environment,” said Peter Torrente, head of KPMG’s U.S. national banking and capital markets group.