Banking News: JPMorgan Chase & Co. (JPM) and Wells Fargo & Co (WFC) Analysis, Bank of America Corp (BAC) Is Still In Focus

…the superbank has come since the financial crisis, it still has a long way to go before it returns to normalcy: stable, profitable, and a place where investor money is not only safe, but put to good use. Here are five things that could still hobble Bank of America Corp (NYSE:BAC), stopping that return to normalcy from happening, or considerably slowing it down.

JPMorgan Shrinks Compensation Pool 7% at Investment-Bank Unit (Bloomberg)
JPMorgan Chase & Co. (NYSE:JPM)’s corporate and investment bank set aside 7 percent less money for employee compensation in the first quarter while the division generated 9 percent more revenue. The unit’s $3.38 billion in compensation costs amounted to 34 percent of revenue, excluding accounting adjustments, down from 35 percent a year earlier, according to figures posted today on the New York-based firm’s website. The pay pool is large enough to give each of the division’s 51,634 employees $65,383 for the three months.

Wells Chief Takes Swipe at ‘Too Big Too Fail’ Critiques (Wall Street Journal)
Wells Fargo & Co (NYSE:WFC) Chairman and Chief Executive John Stumpf took a shot at the notion of too-big-to-fail while discussing the lender’s earnings and said big banks such as Wells Fargo are positioned to help the U.S. economy grow. “All banks add value, and big banks have unique resources and capabilities to help the economy,” Mr. Stumpf said during a conference call following the bank’s first-quarter earnings report Friday. “Some claim that we receive a subsidy or have an unfair advantage from being perceived as too big to fail. We disagree.”

Forbes Earnings Preview: Bank Of America (Forbes)
Analysts expect decreased profit for Bank of America Corp (NYSE:BAC) when the company reports its first quarter results on Wednesday, April 17, 2013. Although Bank Of America reported profit of 31 cents a year ago, the consensus estimate calls for earnings per share of 23 cents.

JPMorgan Analysts Say Big Investment Banks Are ‘Uninvestable’ (Bloomberg)
JPMorgan Chase & Co. (NYSE:JPM), the largest U.S. bank by assets and the top investment bank by fees, is questioning the so-called universal bank model’s future. Top-tier investment banks are “uninvestable at this point with a risk of spinoff from universal banks,” JPMorgan analysts led by London-based Kian Abouhossein wrote in a research note today. They cited potential rule changes and curbs on capital and funding. Investors should avoid Goldman Sachs Group Inc. (GS), once the world’s most profitable securities firm, and Deutsche Bank AG (DBK), Germany’s largest bank, because of pressure on earnings and the unknown impact of new regulations, according to the report.