Move Aside, Big Banks: Giant Funds Now Rule Wall
Street
Asset managers are growing into huge and complex
financial supermarkets that mint billionaires by the dozen.
How JPMorgan’s Cash Call Beat Bank of America
When the Federal Reserve flooded the economy with cash
during the Covid-19 pandemic it exacerbated a problem for America’s largest
banks: What to do with all the extra deposits.
Now that interest rates are set to fall four years
later, the payoffs from the differing approaches at JPMorgan Chase & Co.
and Bank of America Corp. are abundantly clear: The former’s choice to keep
spare cash in money markets or at the Fed turned out to be the much more
lucrative strategy than investing in bonds.