Banks Reap Record Trading Profits as M&A Fees Climb at 2nd-Fastest Pace in 10 Years
Updated
Updated · The New York Times · May 22
Banks Reap Record Trading Profits as M&A Fees Climb at 2nd-Fastest Pace in 10 Years
2 articles · Updated · The New York Times · May 22
Record trading profits and rising bonuses have put banks in a rare sweet spot, with mergers, acquisitions and other deals generating billions of dollars in fresh fees.
Trump administration deregulation is adding to that momentum by easing constraints that had limited bank expansion and risk-taking since the 2008 financial crisis.
The rebound marks a reversal from the post-crisis era, when private equity and private credit firms captured Wall Street’s richest rewards through higher-risk bets.
Private equity firms are now struggling to raise money after weak returns, while some banks such as Citizens have expanded rapidly and seen shares rise more than 50% over the past year.
The banking upswing stands out against a shakier global backdrop of airline bankruptcies, disrupted shipping, rising inflation and AI-driven industry upheaval.
Are today's record bank profits a sign of a healthy economy or the prelude to another financial crisis?
If studies show deregulation doesn't guarantee profitability, what is truly fueling the current banking boom?
With post-2008 safeguards weakening, how can banks avoid repeating the mistakes that led to past collapses?