For the First Time Ever, Profits of all Wall Street Banks Top $100 Billion
One may not know it by looking at banker bonuses last year, but 2018
was a banner year if only for bank shareholders and upper management: this is the year when the 6 biggest banks generated (well) over $100 billion in profit.
They can thank Trump’s tax cuts, the Fed’s payment of interest on
reserves, rising interest rates, a jump in dealmaking and a
retail-banking boom (if not so much the “bad volatility” that resulted
in a plunge in fixed income, currency and commodity trading fees).
As Bloomberg first noted, JPMorgan, Bank of America, Wells Fargo and
their peers have already reported more than $111 billion of profit for
2018, and Morgan Stanley will complete the money-center picture tomorrow
when it releases its fourth-quarter results Thursday and only makes
this number bigger.
While JPMorgan and Bank of America both had record years, Goldman and
Citigroup had their biggest annual profits since the financial crisis.
The staggering profits, coupled with upbeat commentary about 2019 may
ease fears that rate hikes and trade wars will bring an end to good
times for the biggest banks.