Why Are Banks Doing So Well Following Trump's Win?
Despite anticipation that the so-called Trump rally in the markets would continue through the close of 2016, most analysts were waiting for January’s bank-earnings reports before declaring the “Trump bump” official. Now those reports are in, and it’s clear: Several major banks are enjoying large upticks in earnings in the wake of the election—at least for now.
On Wednesday, Goldman Sachs reported $7.1 billion in earnings for 2016 while Citigroup reported earnings of $14.9 billion—each due in part to from the previous year, and JP Morgan reported . Even Wells Fargo, with its massive fake-account scandal and , enjoyed some gains from the post-election rally. These earnings bumps are partly because of the frenzy of trading that followed the election.
