JPMorgan profit surges on investment banking gains

The banking industry has another winner. JPMorgan Chase reported a 36% jump in 2nd-Q profits Thurs., easily surpassing analysts' forecasts as huge gains in its investment banking business outweighed higher losses from bad loans. Results came 2 days after rival Goldman Sachs also posted surprising good results, solidifying the companies' position as the strongest players in the industry. Many other banks still struggl to emerge from the worst of a credit crisis that peaked last fall as well as a recession that sent loan defaults higher. "Both JPMorgan & Goldman Sachs were well positioned going into the crisis, and they are going to continue to pull ahead & dominate the sector," said Len Blum, managing partner at investment bank Westwood Capital. JPMorgan & Goldman are among the 10 major banks fed regulators deemed healthy enough in June to repay billions in bailout funds, freeing them from tighter gov