The Intelligence from The Economist

A pounder of a quarter: American banks report

Jul 16, 2021
Alice Fullwood, Wall Street correspondent, shares insights on American banks reveling in increased profits despite falling revenues, driven by pandemic shifts. She highlights bankers' cautious optimism about future performance amid investor concerns. Georgia Banjo, foreign affairs correspondent, tackles Jamaica's intricate marijuana laws, revealing the struggles of local farmers transitioning to legal cultivation amidst enduring law enforcement challenges. Their discussions paint a vivid picture of the evolving financial and cultural landscapes.
Ask episode
AI Snips
Chapters
Transcript
Episode notes
INSIGHT

Banks' surprising performance

  • American banks reported strong Q2 2021 earnings, exceeding pre-pandemic levels.
  • This positive performance is partly due to pandemic-related factors.
INSIGHT

Sources of bank profits

  • Investment banks profited from booming market activity, especially M&A and IPOs.
  • Retail banks benefited from fewer loan losses than initially anticipated.
INSIGHT

Shifting mood among bank executives

  • Bank executives expressed optimism due to strong consumer spending and deal pipelines.
  • This contrasts with their previous cautiousness during the pandemic.
Get the Snipd Podcast app to discover more snips from this episode
Get the app