For years investors have been left to guess how an investment bank makes its money.
There are clues, broad figures on revenue and net income, dollar figures on advisory fees earned but details like what a firm charges for the trades they execute for clients, or how many of these trades they execute each quarter, were never disclosed until last month.
In an effort to better explain the business to clients, investors, the media and regulators, Jes Staley, CEO of JPMorgan Chase’s investment bank, partially pulled back the curtain that has cloaked the business for year. In a presentation he disclosed how the business generates 70% of its trading revenue.
In an interview with CNBC, Staley talks about why this disclosure is important, whether the lack of transparency has hurt the business and whether the trading environment recovered from last year’s dismal fourth quarter.
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