The Intelligence from The Economist Laughing all the way: banks’ pandemic windfall
Jul 17, 2020
Alice Fullwood, a U.S. finance correspondent, and Sarah Maslin, Brazil correspondent, dive into the stark reality of pandemic-induced economic disparities. They highlight the soaring profits of investment banks amidst widespread struggles of everyday Americans. Discussions also touch on uncontacted tribes in the Amazon facing increasing threats from development, and the ethical dilemmas surrounding their protection. The conversation wraps with a look at a notorious Sardinian mobster who continues to elude capture, leaving listeners intrigued by the chase.
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Wall Street vs. Main Street
- Investment banks profited during the pandemic while Main Street banks struggled.
- This disparity highlights the differing roles and vulnerabilities of these institutions during economic downturns.
Investment Bank Success
- Investment banks thrived due to increased demand for capital raising and volatile market conditions.
- Companies sought to secure capital, leading to higher trading volumes and profits for investment banks.
Main Street Banks' Losses
- Main Street banks prepared for loan losses but haven't experienced significant defaults yet.
- Government stimulus and payment deferrals have helped individuals and businesses stay afloat.