Banking Thrives Under Trump: Implications for Markets and Consumers

US banks are thriving under Trump's economy, with even former laggards showing signs of resurgence. Wells Fargo CEO Charlie Scharf expressed optimism during an earnings call, citing deposit growth, new account growth, and well-performing credit. The company recently gave employees a $2,000 bonus to celebrate the milestone of finally lifting a Federal Reserve cap on its balance sheet. This resurgence has implications for markets and consumers.

Large U.S. banks, including Wells Fargo, have reported strong earnings in the second quarter, signaling a rebound in dealmaking and investment banking revenues. This resurgence comes amidst an uncertain economic environment and ongoing trade tensions, yet optimism remains high among investors.

Wells Fargo CEO Charlie Scharf expressed optimism during an earnings call, highlighting deposit growth, new account growth, and the performance of credit. The company recently celebrated lifting a Federal Reserve cap on its balance sheet by giving employees a $2,000 bonus. This resurgence has broader implications for markets and consumers.

JPMorgan Chase, Citigroup, and Wells Fargo reported improved investment banking revenues in the second quarter, with JPMorgan's fees growing by 7% to $2.5 billion, Citigroup's revenues jumping by 15% to $981 million, and Wells Fargo's revenues increasing by 8% to $463 million [1]. These gains were driven by higher debt underwriting and advisory fees, as well as momentum in mergers and acquisitions.

Despite the uncertainty surrounding tariffs and the economic environment, optimism has grown among investors. Citigroup's Chief Financial Officer Mark Mason noted that there is "more growing familiarity with how to deal with uncertainty and volatility" and that the general sentiment has improved [1]. The pipeline for deals in North America looks promising, particularly in healthcare and tech sectors.

Bank of America, Goldman Sachs, and Morgan Stanley are expected to report their results on Wednesday, with analysts anticipating strong performances driven by equities and fixed income trading. The anticipated revenues from these trades would be up 11% on the previous year [3].

While the trade war has caused volatility in markets, the recent improvements in sentiment and dealmaking suggest a more robust economic environment. John Waldron, president of Goldman Sachs, expects a lot of IPO activity and M&A transactions above $500 million in the autumn if the current environment persists [3].

The resurgence of U.S. banks under Trump's economy is a sign of resilience in the financial sector. As banks continue to navigate the uncertain economic environment, their performance indicates a growing confidence in the U.S. economy's strength.

References:
[1] https://www.reuters.com/business/finance/us-banking-giants-reap-gains-dealmaking-rebound-2025-07-15/
[2] https://www.straitstimes.com/world/united-states/trump-hints-at-no-trade-deal-with-japan-by-aug-1-deadline
[3] https://www.thetimes.com/us/business/article/us-banks-set-to-report-26bn-windfall-from-tariff-trades-k8cqdzh5n