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Viewsroom

Wall Street bank boom is defying gravity

Viewsroom

Reuters

News

4.458 Ratings

🗓️ 24 July 2025

⏱️ 26 minutes

🧾️ Download transcript

Summary

Goldman Sachs, JPMorgan and Morgan Stanley all released results in recent weeks. In this Viewsroom podcast, Breakingviews columnists explain why, despite looming tariffs and stubborn inflation, these lenders appear to be firing on all cylinders – but also why it may not last. Visit the Thomson Reuters Privacy Statement for information on our privacy and data protection practices. You may also visit megaphone.fm/adchoices to opt-out of targeted advertising.   Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

The views expressed on this podcast are those of the participants, not of Rogers News.

0:08.7

And everyone in Wall Street, and it's the same in City of London, it's the same in Frankfurt, it's saying, our trading businesses and our financing businesses, who were you financing?

0:17.4

When was the last time that we went 10 years without a big hedge fund exploding?

0:22.2

I don't remember that ever happening.

0:26.0

So I don't really get that whole thing.

0:29.3

It's more durable on a quarter to quarter basis, obviously.

0:32.0

It's a higher returning activity potentially,

0:37.1

but it doesn't make me feel great about the state of the system, if you know what I mean. The Trump administration's enmity for economic orthodoxy seems to be caused for dismay everywhere except Wall Street, and even then, only below the sea suite.

0:47.3

It almost sounds like it could be a poem, Jonathan.

0:51.3

A strange one to watch.

0:55.8

Starting off with my Wall Street Zen Coens.

0:58.5

Like a haiku of something. But yes, a strange one, Jamie Diamond and some of the other bosses

1:04.8

of the Wall Street banks, which we've seen earnings of in the past week, have really

1:09.6

been talking up quite a a bad situation like that

1:13.7

they you know there's how many economic threats are on the horizon but at the same time they're

1:19.8

releasing results that essentially are like looks like the banks are firing on all cylinders

1:24.5

so this kind of gap between the gloom and boom is the focus of this

1:30.9

week's views room. It's Amy. And it's Jonathan. And this is the views room, the weekly podcast,

1:38.0

where we dive into the naughtiest topics in business, economics, and finance. And there is an

1:44.0

oddball not here. We have the KBW index

1:46.8

of big bank stocks. It's up roughly 28% in the past year. It's way outpacing the S&P 500 index.

1:53.2

We've seen J.P. Morgan, Bank of America, Citigroup and so on come out with results that look

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