Profits Up At Chase & Wells Fargo But Deposit Rates In The Basement

This Huffington Post article, JPMorgan Chase Should Thank Ben Bernanke For Its Record Profits, has a good review of the Q3 earnings of both Chase and Wells Fargo. Excerpts:

Ben Bernanke just can not stop rescuing banks. He's like a chocoholic, except for rescuing banks.

Friday morning brought another example, when JPMorgan Chase and Wells Fargo -- two of the biggest, if not failiest, banks in the United States -- reported third-quarter earnings. Both got a big lift from the mortgage market. Yes, the mortgage market, believe it or not. The mortgage market, in turn, has been supported -- and will continue to be supported for the foreseeable future -- by Federal Reserve Chairman Ben Bernanke.

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In addition to higher profits, deposits have also grown at both banks.

From Wells Fargo's Q3 earnings report:

Average core deposits were $895.4 billion, up 7 percent from a year ago and up 7 percent (annualized) from second quarter 2012.

From Chase's Q3 earnings report

Average total deposits were $393.8 billion, up 9% from the prior year and 1% from the prior quarter; deposit growth rates were among the best in the industry

High deposit rates are sure not the reason for deposit growth. Two examples of their current rates:

Wells Fargo's special 58-month CD has a 0.80% APY.

Chase's special 5-year CD has a 0.75% APY.