This week, Bank of America, Citi, JPMorgan and Wells Fargo released fraught earnings reports as President Trump’s threatened cap on credit card rates loomed large.
For a year, Wall Street’s dominant theme has been the so-called K-shaped economy, in which the well-to-do have powered financial activity despite lower earners’ struggles.
This week, the nation’s largest banks reported a broadly disappointing set of quarterly earnings, the first stumble after a yearlong spree of rising markets and softening regulations paid off handsomely for the finance set.
Results at Bank of America, Citi, JPMorgan Chase and Wells Fargo all fell short of expectations, and their shares fell. Troubles ranged from delayed merger deals (JPMorgan) to stubborn expenses (Citi) to questions about the efficacy of artificial intelligence tools (Bank of America). Banks that do business largely with rich individuals and corporations, such as Goldman Sachs and Morgan Stanley, fared comparatively better.
