Episode Overview

Podcast: WSJ What’s News
Episode Title: What’s Behind Wall Street’s Bumper Year
Date: December 12, 2025
Host: Alex Osila, The Wall Street Journal

This episode explores three core stories shaping business and finance: the factors driving one of Wall Street's most profitable years ever, shifting rhetoric on climate change among politicians and CEOs, and notable global headlines, including corporate milestones and international incidents. Featuring insights from WSJ Wall Street Editor David Benoit and Chief Economics Commentator Greg Ip, the episode delivers fast-paced analysis and on-the-ground reporting.

Key Discussion Points & Insights

1. Wall Street’s Outstanding Year

Segment Start: 00:32
Guests: David Benoit, WSJ Wall Street Editor

• Record-Breaking Bank Performance

  • Market revenue surges: A boom in both trading and investment banking — highlighted as possibly the "second biggest year in history" for banking fees at Goldman Sachs.
  • Trading volume growth: JP Morgan’s head of consumer banking expects "growth in the low teens from a year ago for trading revenues."
  • Active M&A environment: Major deals—including the buyout of Electronic Arts, Google’s acquisition of Wiz, and the impending Warner buyout—drove fee windfalls for banks.
  • Investor behavior: Retail clients increased demand for trading services and leveraged trading, further inflating banks' earnings.
  • Milestone for Bank of America: Achieves record-high stock price for the first time since before the 2008 financial crisis.

• Drivers Behind the Bumper Year

  • Market volatility helps banks: "Chaos works out pretty well for the banks" (David Benoit, 02:32).
  • Political influence: The perception that "Donald Trump is going to approve deals" spurred companies to act on M&A.
  • White House & Fed policy: Ongoing speculation and uncertainty about the Fed and economic direction prompted active market participation.

• Bank Strategy for 2026

  • Aggressive growth posture: "Everyone is pretty cutthroat right now, right? They see all these fees out there and they're all trying to get them." (David Benoit, 03:41)
  • Spending for expansion: JP Morgan plans $105 billion in expenses next year, an increase focused on investment in AI, talent, and customer growth.

• Memorable Quote:

  "We are seeing a lot of banks talk about we're ready to spend, we're ready to grow, we want to grow faster."
  — David Benoit, 03:44

2. Changing Climate Rhetoric

Segment Start: 07:54
Guest: Greg Ip, WSJ Chief Economics Commentator

• Shift in Public & Political Focus

  • Climate concern peak: Four to five years ago, climate was central to political and business discourse, especially under President Biden’s administration.
  • Changing priorities: Rising inflation and global instability (e.g., Russia-Ukraine war) have redirected attention to economic security and personal finances.
  • Muted alarms: "Politicians and CEOs seem to have muted those alarms and softened their warnings." (Alex Osila, 07:50)
  • Political climate shift: Larry Fink, Bill Gates among those dialing back public urgency on climate, reflecting changed winds after Trump’s election.

• Future of Climate Policy

  • Carbon tax unlikely: "A lot of policies that would have been helpful... like a carbon tax, become even harder to enact now... I have to admit that that cause was lost ages ago." (Greg Ip, 08:53)
  • Realistic approaches: Moving away from "climate catastrophism" toward "a more kind of subtle, sober climate realism"—focus on incremental, politically feasible steps.
  • Tech optimism: Despite policy inertia, progress in renewables and energy storage is set to ensure emissions continue declining, especially in the US.

• Memorable Quotes:

  "Climate change is not something they're inclined to worry about when they're more worried about their pocketbooks or... the security of their energy supply."
  — Greg Ip, 08:32

  "Rather than focusing on the catastrophic outcomes and the need to change everything all at once right now, people focus instead on what's politically supportable and doable."
  — Greg Ip, 09:33

3. Other Major Headlines

US Markets Recap (00:32 – 02:32)

• Stock market correction: Nasdaq plunged 1.7%, led by a dramatic Broadcom sell-off; Dow and S&P 500 also declined.
• Broadcom’s record drop: Stock fell over 11%, losing $219 billion in market cap after guidance disappointed despite record sales.
• Bank of America’s milestone: Stock returns to pre-2008 heights.

Fed Leadership Watch (04:40)

• Trump’s choice for Fed chair: President Trump is wavering between former Fed governor "KE" and National Economic Council Director Kevin Hassett.
• Memorable Trump Quote:

  "I think the two Kevins are great." (Alex Osila, 04:44)

• Trump wants the next Fed chair to consult with him on interest rates and pushes for more rate cuts.

International News (05:54 – 07:54)

• Narges Mohammadi arrested: Iranian Nobel laureate detained violently, per her brother.
• Tibetan protest crackdown: Dozens detained for protesting a gold mine project in western China.
• Michigan football scandal: Former coach Sharon Moore dismissed and charged after misconduct investigation.

Costco’s Holiday Strategy (10:14)

• Adapting to tariffs: Reducing foreign-sourced items, offering more US products, resulting in a smaller assortment.
• Food sales boom: 4.5 million pies sold in three days before Thanksgiving (10:37).

Notable Quotes & Timestamps

• On bank performance:
  "Chaos works out pretty well for the banks." — David Benoit, 02:32

• On climate realism:
  "As this sort of climate catastrophism... retreats, it gets replaced by a more kind of subtle, sober climate realism." — Greg Ip, 09:30

• On corporate adaptation:
  "We're ready to see a big year for banking in 2026 again, depends on, you know, what happens in geopolitics and the rest of the world." — David Benoit, 04:21

• On retail behavior:
  "US bakeries also set a record in the three days leading up to Thanksgiving selling 4.5 million pies. That's over 7,000 pies per warehouse over a three day period." — Segment Narration, 10:37

Timestamps for Important Segments

• Wall Street performance: 00:32 – 04:32
• Fed chair speculation: 04:40 – 05:27
• International headlines: 05:54 – 07:54
• Shifting climate rhetoric: 07:54 – 10:10
• Costco's holiday strategy: 10:14 – 10:48

Episode Tone & Style

The episode is brisk, analytical, and fact-driven, with a focus on clear explanation and timely news. Direct speaker quotes and specific market and policy details make the content both accessible and authoritative.

This summary covers the major themes, key insights, and notable moments, providing a comprehensive guide for anyone who missed the episode.