Banks cash in on whiplashing markets
Banking giants earned record trading revenues amid volatile markets.
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• less than 3 min read
Your 401(k) switching between red and green faster than a traffic light led to big bucks for the banking behemoths that facilitate stock and bond trades.
Banks are reporting record trading revenues that buoyed profits in Q1, when a barrage of tariff announcements created market volatility. In the first three months of 2025:
- Equities trading at Citigroup and Bank of America rose 23% and 17%, respectively, the companies reported yesterday.
- Meanwhile, rivals JPMorgan Chase and Goldman Sachs blew it out of the water with 48% and 27% respective rises in equity trading revenues, they said last week.
- And Morgan Stanley hit a record $17.74 billion in revenue as trading soared by 45% last quarter.
Bank bosses are optimistic that if markets continue to seesaw in Q2, it could help offset a lull in dealmaking amid the economic uncertainty. They say the bonanza continued as “Liberation Day” tariffs had investor clients clicking “buy” and “sell” with the speed of a gamer’s index finger.
But…Goldman Sachs CEO David Solomon has urged President Trump to provide more clarity about his trade policies to foster a better investment climate.
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