The big headlines after JPMorgan Chase's earnings release shouted out its $4.4 billion in trading losses in the second quarter.

Behind the scenes, that $4.4 billion was perfectly matched by "$1.0 billion of securities gains in CIO and a $545 million gain on a Bear Stearns-related first-loss note ... [and] $755 million of DVA gains, reflecting adjustments for the widening of the Firm's credit spreads which, as we have consistently said, do not reflect the underlying operations of the Firm. The Firm also reduced loan loss reserves by $2.1 billion, mostly for the mortgage and credit card portfolios."

That ain't a coincidence. Fool banking analyst Anand Chokkavelu explains in the following video.

With so many of the big finance firms getting bad press these days, you may be inclined to stay away from the sector entirely, but that could be a huge mistake. In fact, some of the best opportunities over the next few years can be found there, including one small, under-the-radar bank. It’s been called one of The Stocks Only the Smartest Investors Are Buying. You can learn about it, and more, in our exclusive free report. Just click here to keep reading

Anand Chokkavelu owns shares and warrants of JPMorgan Chase. The Motley Fool owns shares of JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.