The biggest U.S. banks reported earnings this week, and the companies’ top leadership didn’t shy away from addressing the incoming Trump administration.
The banking industry has shown that it’s eager to usher in a new era under President-elect Donald Trump. Wall Street bankers expect the former and soon-to-be president to scale back regulations when he returns to the White House next week. A hands-off approach under Trump is expected to spur investment and other banking activities, such as mergers and acquisitions.
In the words of JPMorgan Chase (JPM) CEO Jamie Dimon, bankers — regardless of who they voted for — were “dancing in the street” following Trump’s election victory in November.
But financial institutions aren’t entirely free from concerns. Tariffs and policy proposals that could further balloon the national debt are front of mind, as concerns rise about inflation re-rearing its head.
With major banks kicking off earnings season Wednesday, here’s what some of the nation’s most prominent bankers had to say about the incoming Trump administration.
“There has been a meaningful shift in CEO confidence, particularly following the results of the U.S. election,” Goldman Sachs (GS) CEO David Solomon said on a call with analysts Wednesday.
“Additionally, there is a significant backlog from sponsors and an overall increased appetite to dealmaking supported by an improving regulatory backdrop,” he added.
“The combination of these conditions should spur further activity in 2025,” Solomon said, referring to global markets activity, including mergers and acquisitions.
Without looking ahead too much, Bank of America (BAC) CEO Brian Moynihan said the nation’s second-largest bank by assets “saw a strong momentum as the election results provided a lift to sentiment for a more pro-business climate and expectations for more deals to be completed.”
“We finished 2024 with good momentum as we enter 2025,” Moynihan later said. “The economy is resilient and healthy. The consumers continue to spend a solid and healthy rate. The employment levels are strong. The asset quality we can see is very good.”
“We are predominantly a U.S. bank, we succeed when the country succeeds, so the incoming administration’s support of U.S. businesses and consumers gives us optimism as we look forward,” Wells Fargo (WFC) CEO Charles Scharf told analysts Wednesday.
“Additionally, the incoming administration has signaled a more business-friendly approach to policies and regulation, which should benefit the economy and our clients,” he said.
While JPMorgan Chase CEO Jamie Dimon didn’t directly reference the election, he mentioned a new regulatory environment and potential inflation from the incoming administration’s policies within the bank’s fourth-quarter earnings report.
“Regarding regulation, we have consistently said that regulation should be designed to effectively balance promoting economic growth and maintaining a safe and sound banking system,” Dimon said. “It is possible to achieve both goals. This is not about weakening regulation — we maintain a fortress balance sheet, evidenced by $547 billion of total loss-absorbing capacity and $1.4 trillion of cash and marketable securities — but rather about setting rules that are transparent, fair, holistic in their approach and based on rigorous data analysis, so that banks can play their critical role in the economy and markets.”
“The U.S. economy has been resilient,” he added. “Unemployment remains relatively low, and consumer spending stayed healthy, including during the holiday season. Businesses are more optimistic about the economy, and they are encouraged by expectations for a more pro-growth agenda and improved collaboration between government and business. However, two significant risks remain. Ongoing and future spending requirements will likely be inflationary, and therefore, inflation may persist for some time. Additionally, geopolitical conditions remain the most dangerous and complicated since World War II. As always, we hope for the best but prepare the Firm for a wide range of scenarios.”
On a call with analysts Wednesday, Citigroup (C) CEO Jane Fraser referenced potential tariffs or taxes as policies that could affect economic activity, but suggested that the conditions of this coming year will largely be a continuation of last year.
“We entered 2025 with strategic clarity and good momentum across all our businesses,” Fraser said.
“From the global macro perspective, economies have done a good job tolerating hikes from central banks and inflation has clearly been receiving,” she said. “While policies will certainly impact economic activity, whether in the form of tariffs or taxes, 2025 doesn’t look that different from 2024. The U.S. remains at the heart of the macro picture.”
“Over the last several years, we’ve been faced with two central themes,” Morgan Stanley (MS) CEO Ted Pick said in a call with analysts Thursday. “One, the end of financial repression, namely the passing of the era of ultra-low interest rates and the reemergence of inflation; and two, ‘the end of the end of history’ with the resumption of geopolitical uncertainty,”
“These paradigm shifts juxtaposed against renewed investor and corporate confidence, present opportunities to support clients with exceptional advice and market access,” Pick said. “Morgan Stanley is well-positioned to execute against these opportunities.”
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