This video is part of our "Motley Fool Conversations" series, in which analyst Austin Smith discusses topics around the investing world.

In toady's edition, Austin takes a closer look at how finance top dog JPMorgan Chase (NYS: JPM) earns its cash. The company is the poster child for the homogenization that's gone on in the finance space recently, with Wall Street banks gaining a Main Street division, and vice versa. This has made companies in this space that much more complex and difficult to analyze, but it's also given them even more catalysts for growth. Despite all of these mergers and buyouts, though, this space is still extremely cheap today. Many big banking firms trade near historic lows with regard to their book value and could slingshot upward in the coming months.

You may be convinced that banking has a bright future but want to avoid the big Wall Street firms with tainted reputations. If that's the case, you can read all about "The Stocks Only the Smartest Investors Are Buying." In our report you'll learn about smaller banks that Warren Buffett surely wishes he could buy but can't. Click here to access your report -- it's totally free.

At the time this article was published Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Wells Fargo and has created a covered strangle position in Wells Fargo. Motley Fool newsletter services recommend Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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