Bank On It

Bank On It

It's good to be the bank. You know, just in a kind of general sense. That's where all the money is, after all. And last year was a banner year for trading desks and investment bankers, as Wall Street prospered despite (and in some sense as a result of) the pandemic. For example, the second quarter of 2020 was the worst quarter for the US economy since The Great Depression. During that three-month stretch, Goldman, Morgan Stanley, Citi, and JPMorgan together generated some $25 billion between t
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2 thoughts on “Bank On It

  1. Once corporate America has more cash than they need, and therefore, the banks can no longer make “big” money on IB fees/commissions and resales, they will have to lend to main street if they want profits.
    Corporate real estate is patiently waiting on the sidelines to be refinanced – with their upside down loan-to-value situation. The Fed might have to offer to buy any underperforming loans- LOL.

  2. That loans chart should call into question the whole notion that banks will benefit from higher rates and a steeper curve. That’s what used to happen, but it doesn’t seem to be the case anymore.

    Partly due to the increasing share of loans (individual and small business) being made by non-bank entities. Did I recently see a stat that the non-banks were accounting for 35% of new lending to those groups? Or was I hallucinating?

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