JPMorgan Chase vs Bank of America

JPMorgan Chase vs Bank of America: What investors need to know

JPMorgan Chase and Bank of America are the two largest US banks by assets. JPMorgan is widely considered the gold standard of American banking — with CEO Jamie Dimon credited for navigating the 2008 financial crisis better than any major competitor. Bank of America is the most interest-rate-sensitive of the major banks, meaning its earnings rise and fall dramatically with interest rate changes. Both are cyclical businesses closely tied to economic growth. In recessions, loan losses mount and investment banking revenue collapses. In expansions, both businesses typically perform well. The key differences: JPMorgan has a stronger investment bank and more consistent earnings; Bank of America benefits more in rising-rate environments due to its large consumer deposit base.

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