America’s biggest banks are reporting robust earnings, even as executives grow wary of hidden risks, The Wall Street Journal writes.
JPMorgan, Bank of America and Goldman Sachs all beat expectations last quarter, fueled by strong consumer spending, corporate dealmaking, and market rallies. Combined, the six largest banks earned $41 billion—up 19% year over year.
Still, caution dominated their tone. Bank leaders cited rising credit-card balances, slowing job growth, and isolated bankruptcies—like auto lender Tricolor—as early warning signs of potential trouble. Federal Reserve Chair Jerome Powell acknowledged continued labor-market weakness, reinforcing expectations of another rate cut this month.
Despite record assets at BlackRock and surging retail activity at Morgan Stanley, uncertainty persists amid trade tensions, a government shutdown, and lingering inflation.
As JPMorgan’s Jamie Dimon warned, “When you see one cockroach, there’s probably more.” For now, the consumer remains resilient—but the banking industry isn’t taking that for granted.
