WSJ What’s News – "What’s News in Earnings: Why 2025 Was One of the Best Years Ever for Banks"

Date: January 21, 2026
Host: David Uberti
Guest: AnnaMaria Andriotis (Lead Financial Reporter, WSJ)
Special Guests (Quotes): Jamie Dimon (CEO, JPMorgan), Brian Moynihan (CEO, Bank of America)

Episode Overview

The episode provides a deep dive into the blockbuster banking earnings reported for 2025, examining why it became one of the strongest years ever for major U.S. banks. Host David Uberti and lead financial reporter AnnaMaria Andriotis break down the drivers behind these records, the resilience of American consumers, and how policy moves—particularly those proposed by President Trump—could shape the industry and affect both Wall Street and Main Street in 2026. The episode also features insights from top banking CEOs and discusses the potential impacts of proposed credit card interest rate caps.

Key Discussion Points & Insights

1. 2025: A Record-Breaking Year for Big Banks

[00:23-01:33]

• The six largest U.S. banks collectively earned $157 billion in profits, up 8% from 2024—a new record.
• "The health of big banks gives us a snapshot of the state of the economy, tracking money flowing in and out of Americans’ pockets." – David Uberti (00:38)
• Major growth in both trading and investment banking led the surge.
• AnnaMaria explains:

  "Those engines right now are very strong. Goldman Sachs and Morgan Stanley both posted record annual revenues in 2025 in their investment banking and trading divisions." (01:33)

[01:33-02:25]

• All six major banks—Goldman Sachs, Morgan Stanley, JP Morgan, Bank of America, Citigroup, Wells Fargo—posted increased revenues in core Wall Street businesses.
• Drivers included:
  • Major comeback in mergers and acquisitions (M&A); 2025 was the second-highest year for M&A volume.
  • Increased lending to support these deals.
  • Rising company confidence and robust corporate activity.

2. 2026 Market Outlook: More Deals and New IPOs

[02:25-03:33]

• Optimism persists: Bankers, including Goldman Sachs CEO David Solomon, expect even more M&A in 2026.
• "[Bankers] do expect more deal activity. ...the bullish view...is that in 2026 there'll be a new record in terms of M and A." – AnnaMaria Andriotis (02:32)
• Anticipation of a big year for IPOs, driven by breakthroughs in AI (companies like Anthropic) and rocket manufacturing.
• Factors fueling this activity:
  • Stock market at record highs.
  • Friendly regulatory environment for deals.
  • Urgent corporate need for investment in AI and infrastructure, leading to more borrowing.

3. Risks and Warnings: Geopolitical and Policy Uncertainty

[03:33-04:33]

• Even as profits soar, top bankers are cautious.
• Jamie Dimon (JPMorgan):

  "Geopolitical is an enormous amount of risk. ...just a big amount of risk that may or may not be determining the state of the economy." (03:42)

• AnnaMaria notes similar warnings from Goldman Sachs and Morgan Stanley about rising policy and geopolitical risks—especially trade tensions involving Greenland, tariff policy uncertainty, and questions about the Federal Reserve’s independence.
• "As good as it is right now, there were warnings issued that it's kind of fragile." – AnnaMaria Andriotis (04:18)

4. Consumer Strength Supporting Growth

[04:33-05:17]

• Despite headwinds, consumer credit and spending remain robust.
• JP Morgan, Bank of America, Citigroup report rising card spending and low or even falling delinquencies.
• Similar positive signals from regional banks.
• "Spending on cards rose in the third quarter while delinquencies on credit cards lower." – AnnaMaria Andriotis (04:54)

5. Policy Spotlight: Trump’s Proposed 10% Cap on Credit Card Interest Rates

[05:17-06:56]

• President Trump is pushing for a temporary 10% cap on credit card interest rates as an affordability measure.
• Bank of America CEO Brian Moynihan warns:

  "If you bring the caps down, you're going to constrict credit, meaning less people will get credit cards and the balance available to them on those credit cards will also be restricted." (05:36)

• AnnaMaria elaborates:
  • Credit card lending is unsecured, hence higher interest rates (average: 23%) reflect risk.
  • A 10% cap would likely exclude lower-income or riskier borrowers from the market, reducing consumer spending and potentially slowing economic growth.
  • Wells Fargo’s CFO echoed these concerns, warning of the ripple effect on the economy.

Notable Quotes & Memorable Moments

• On the speculative growth in 2026:
  "Bankers said that they do expect more deal activity...the bullish view internally at Goldman is that in 2026 there'll be a new record in terms of M and A." – AnnaMaria Andriotis [02:32]

• On geopolitical risk:
  "Geopolitical is an enormous amount of risk. I don't have to go through each part of it, just a big amount of risk that may or may not be determining the state of the economy." – Jamie Dimon [03:42]

• On the consumer outlook:
  "Spending on cards rose in the third quarter while delinquencies on credit cards lower." – AnnaMaria Andriotis [04:54]

• On credit caps and economic impact:
  "If you bring the caps down, you're going to constrict credit, meaning less people will get credit cards and the balance available to them on those credit cards will also be restricted." – Brian Moynihan [05:36]

• On possible negative side effects of credit limits:
  "[A cap] would likely get shut off and then...well, less access to credit cards is likely to result in less consumer spending, and from there, there's that ripple effect on the economy." – AnnaMaria Andriotis [06:21]

Important Timestamps

• 00:23: Episode begins, context on bank earnings and economic health.
• 01:33: AnnaMaria details bank revenue surges and M&A boom.
• 02:32: Discussion on expectations for 2026: more deals, IPO surge.
• 03:42: Jamie Dimon warns about geopolitical risks.
• 04:47: Analysis of consumer resilience and credit quality.
• 05:17: Examination of Trump’s proposed credit card interest rate cap.
• 05:36: Brian Moynihan shares concerns on impact of credit caps.
• 06:21: AnnaMaria expands on ripple effects of policy on macroeconomy.

Tone and Takeaways

The episode is brisk, data-driven, and cautious. While the tone acknowledges the celebration of stellar bank profits and optimism around deal-making, there’s a consistent emphasis on the fragility of these gains. Both host and guests highlight the precarious balance between booming Wall Street activity and the unpredictable knock-on effects of policy shifts or global turbulence. The discussion of consumer credit warns listeners how headline-grabbing interventions can have complex, unintended side effects on the broader economy.

For listeners:
This episode is a straightforward, accessible guide to why banks boomed in 2025, what might be next, and what to watch out for—whether you care about markets, politics, or your own wallet.