Mortgage boom lifts US banks

American banks have reported better than expected third quarter earnings following the Federal Reserve's intervention in the housing market.

After a lacklustre few quarters due to a struggling economy and choppy markets, third-quarter earnings at American banks proved better than expected. JPMorgan Chase reported a 36% year-on-year jump in profits to a quarterly record of $5.3bn. Wells Fargo, the biggest mortgage lender, made $4.7bn, also a record.

Goldman Sachs bounced back from a poor third quarter in 2011, thanks to a strong performance by its investment banking and trading divisions. Citigroup's underlying profits rose by 27% to $3.3bn. Citigroup's CEO Vikram Pandit suddenly stepped down, accompanied by chief operating officer John Havens.

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