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Big banks expose huge divide between Main Street and Wall Street

July 17, 2020. Summarized by summa-bot.

Pedestrians walk past a boarded up restaurant in Santa Monica, California, U.S., on Friday, June 5, 2020. Fewer felony arrests for looting and vandalism have been reported each day this week in the city of Los Angeles, just as street protests against unjustified police violence grew in size and frequency, according to NBC Los Angeles. Photographer: Bing Guan/Bloomberg via Getty Images

The stark divide between Main Street and Wall Street is on display in the shifting fortunes of America's big banks.

New York (CNN Business)The stark divide between Main Street and Wall Street is on display in the shifting fortunes of America's big banks.

These Wall Street-focused banks reported blockbuster second-quarter results by capitalizing on sizzling markets and bustling trading activity.

JPMorgan (JPM), Bank of America, Wells Fargo, Citi (C), PNC and US Bancorp (USB) set aside a combined $31. 1 billion in additional loan-loss reserves during the second quarter.

Bank of America (BAC), for instance, set aside another $4 billion to guard against loans that go bad because of the "weaker economic outlook related to COVID-19. " Those credit losses drove a 52% plunge in Bank of America's profit.

For instance, US Bancorp's mortgage banking revenue more than tripled during the second quarter from the year before.

Gangbusters quarter for Wall Street banks

Goldman Sachs grew revenue by 41%, the second-best quarterly haul in the bank's history.

Morgan Stanley's sales and trading revenue surged 68% from a year ago on "elevated client activity. " Fixed-income trading revenue nearly tripled to $3 billion thanks to "robust global capital markets activity. "

For instance, JPMorgan's corporate and investment bank reported an 85% profit leap on record revenue.

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