JPMorgan: Financial Winners & Losers

JPMorgan Chase shares fall even after the bank exceeds analysts' second-quarter expectations.
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BOSTON (TheStreet) -- JPMorgan Chase (JPM) - Get Report was among the losers of the financial sector Thursday even after the bank reported second-quarter earnings that topped analysts' expectations.

JPMorgan Chase

, the first of the major U.S. banks to report earnings, posted a second-quarter profit of $1.09 a share, coming in well ahead of the consensus of 70 cents a share. Results included a 36-cent-a-share benefit from the reduction in loan loss reserves and a 14-cent-a-share charge related to a U.K. bonus tax.

JPMorgan said revenue on a managed basis was $25.6 billion, down from $27.7 billion in the year-ago quarter and $28.2 billion in the first quarter of 2010. Credit loss provisions dropped 65% from a year ago to $3.4 billion, the bank said. Nonperforming assets in the second quarter totaled $18.2 billion, down from $19 billion in the first quarter of 2010 but up from $17.5 billion in the year-ago quarter.

After opening Thursday's higher in positive territory, shares of JPMorgan were lately down 71 cents, or 1.8%, to $39.64.

Bank of America

(BAC) - Get Report



(C) - Get Report

, which are both scheduled to post second-quarter financial results early Friday, were down 2.8% and 2.3%, respectively.

Analysts expect that

Bank of America

will report a second-quarter profit of 22 cents a share on revenue of $29.75 billion. Meanwhile, Citigroup should record earnings of 5 cents a share on revenue of $22.16 billion, according to Thomson Reuters.

Among other U.S. bank stocks,

Morgan Stanley

(MS) - Get Report

lost 2.4% to $24.92, and

Wells Fargo

(WFC) - Get Report

was down 1.5% to $27.26.

Goldman Sachs

(GS) - Get Report

held up slightly better, falling only 0.3% to $138.62, on a report the bank held discussions with regulators to settle fraud charges.

The Wall Street Journal

reports that Goldman, which reports quarterly results next week, and the

Securities and Exchange Commission

held talks about a possible settlement that would resolve both the fraud lawsuit against the firm as well as some of the other probes into Goldman's mortgage department.

In other financial news,

Harvey Golub

has resigned as chairman

American International Group

(AIG) - Get Report

, effective immediately. Fellow AIG board member Steve Miller will replace Golub, who leaves the insurer after battles with AIG CEO Robert Benmosche.

Earlier this month,


reported that Benmosche threatened to resign from AIG unless Golub left. The ultimatum came shortly after AIG's failure to sell its Asian unit to

Prudential PLC

(PUK) - Get Report

for $35.5 billion.

Benmosche said during a June 25 board meeting that he wanted more control over the divestiture, the report says. Golub reportedly was opposed the sale of AIA because even though it would yield more money that could be used to repay bailout funds, it was riskier, one person told



Shares of AIG were lately down 63 cents, or 1.7%, to $36.90.

Among the winners of the financial sector,

TD Ameritrade

(AMTD) - Get Report

shares rose after Bank of America/Merrill Lynch analysts upgraded the stock to neutral from underperform. Shares of TD Ameritrade were up 0.5% to $15.68.

Elsewhere, share of

NY Magic


rallied 21.4% to $25.32 after

ProSight Specialty Insurances

offered to buy the property and casualty insurer for $25.75 a share in cash.

-- Written by Robert Holmes in Boston


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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.