Prof G Markets Why Big Banks Are Selling-Off
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Jan 15, 2026 
Saul Martinez, Head of U.S. Financials Research at HSBC, dives into the nuances of bank earnings and highlights a concerning potential 10% cap on credit card interest rates that could cripple profitability. Rohan Goswami, a business reporter at Semafor, reveals the latest drama in the bidding war for Warner Bros. Discovery, including Netflix's aggressive cash offer and the complex dynamics at play with Paramount. Together, they shed light on the pressures in banking and media, offering insights that are both timely and provocative.
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Good Results, Greater Expectations
- Big bank results were "good, not great," failing to meet very high market expectations.
- Saul Martinez says guidance broadly matched analysts, so results won't trigger major upgrades.
Net Interest Income Fell Short
- Net interest income underperformed some hopes, tempering the traditional bank bull case.
- Banks see positive real rates helping, but they didn't raise 2026 guidance materially higher.
Factor Policy Risk Into Bank Valuations
- Prepare for policy risk around credit-card regulation despite current optimism on deregulation.
- Investors should factor potential regulatory reversals into bank valuations and risk models.