On Monday, the Federal Reserve and the Office of the Comptroller of the Currency, both bank regulators, slapped sanctions on JPMorgan for the trading loss and ordered it to tighten up its risk management procedures. The bank neither admitted nor denied wrongdoing, but said it was working to correct any issues identified by the regulators.
The bank released two reports Wednesday on the loss, one from bank executives and the other from the board of directors. These said that traders and executives in the Chief Investment Office didn’t understand the risks they were taking, didn’t adequately question risky decisions and didn’t properly report ballooning losses.
The board of directors said executives didn’t keep them adequately informed about potential problems and used unapproved models for calculating risk.
Despite the fallout from the trading loss, JPMorgan turned in a strong fourth quarter. Earnings shot up 55 percent over the same period a year ago to $5.3 billion after paying preferred dividends, up from $3.4 billion.
Per share, those earnings amounted to $1.40, blowing away the $1.16 expected by analysts polled by financial data provider FactSet. The bank’s stock rose 47 cents to $46.82, up 1 percent.
Revenue also beat Wall Street’s forecasts, rising 10 percent to $24.4 billion, after stripping out an accounting charge. Mortgage originations jumped 33 percent.
Dimon said the housing market ‘‘has turned,’’ echoing a statement he made in October after the third-quarter earnings report.
AP Business Writer Steve Rothwell contributed to this report.