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It Pays To Be A Bank
Banks. It's good to be one.
Quarterly results from a handful of majors on Wednesday showed it still pays to be in the money business.
JPMorgan's traders scored their best fourth quarter ever, for example, and it was gangbusters over at Goldman too. David Solomon's guys (and gals) hauled in $6.2 billion in revenue across FICC and equities trading (the latter had a record year), easily better than the $5.44 billion consensus expected.
Goldman put up a decent showing in IB as well. Revenue there
“Room to improve penetration” – when you’re a bank, they just let you do it.
Finally, someone is looking out for those poor, starving bankers. The MAGA faithful can sleep tight knowing the bankers and tech titans will be able to fill up their money bins to the tippy top and Trump’s cabinet will protect them from the big, bad DEI officers.
Having a bank franchise is a license to make money. The gang that couldn’t shoot straight at SVB should have read the chapter on asset liability management. Repeat after me, do not invest in long dated fixed rate assets if funded by short dated hot funds. If they had they would still be tonning it.
Bankers may complain about regulatory oversight (most regulations actually get enacted because of abuses by those same bankers) but that also impedes competitive entry along with hefty capital requirements.