Hello everyone, welcome to the Motley Fool's

industry focus financials edition. Today we're talking about

everyone's favorite topic, bank earnings.

So, So revenue declined to most banks. Do you want to talk a little bit about that?

Yeah, so you know this was a quarter and we had gone we came into this quarter knowing that it was going to be a difficult one for the banks

for two reasons in particular the first was that

trading revenues were down at a lot of the big banks and that was as a result of the market volatility

surrounding kind of the concerns about China's growth which I think just this morning we saw some somewhat disappointing figures. It looks like they grew only 6.9% in their

latest period relative to like the plus 10% rates that we were used to a couple

years ago. But the second reason was that interest rates are still low.

And when you have banks that earn a lot of money from owning interest earning assets,

low interest rates is going to take a big impact or have a big impact on your revenue.

And so for those two reasons, we saw revenue fall

at virtually all of the big banks

in the United States last quarter.

Absolutely.

Something to keep in mind if you're listening.

Most banks have loans making up to 50% of their asset-making portfolio,

so when interest rates are as low as they are,

it just, they just don't make as much

money and it's it's kind of a cash-22 for banks because people complain when

rates are too high and then people complain when the banks complain when rates are too low.

...