America’s six largest banks gained $600bn in market value in 2025 due to deregulation efforts and a revival in investment banking, outpacing European rivals and the broader market, with regulatory changes allowing higher leverage and less onerous capital rules fueling growth and investor confidence.
Wall Street bonuses are expected to increase for the second consecutive year, driven by market volatility, a rebound in M&A activity, and strong performances in trading and wealth management, with equity traders potentially seeing gains of up to 25%. However, industry experts warn that this positive trend may not continue into next year due to economic slowdown and risky investments.
Bonuses in the financial sector are expected to rise significantly this year, with equity traders and investment bankers seeing the largest increases in a decade, driven by higher revenues and increased demand for talent, while Goldman Sachs partners emphasize a focus on talent and people. Meanwhile, notable transactions and personnel changes highlight ongoing shifts in the industry.
OpenAI is training over 100 ex-investment bankers to develop AI that automates routine tasks in investment banking, such as financial modeling, through a project called Mercury, aiming to replace the tedious work of junior bankers and improve industry efficiency.
Major US banks reported strong third-quarter earnings, highlighting robust credit portfolios and a booming investment banking sector, despite recent auto company bankruptcies raising concerns about potential hidden risks in the economy.
Morgan Stanley reported a record-breaking third quarter with earnings per share of $2.80 and revenue of $18.22 billion, driven by booming trading activity, a resurgence in investment banking, and strong wealth management performance, surpassing expectations significantly.
Bank of America exceeded expectations in Q3 with a 23% profit increase to $8.5 billion and a 10.8% rise in revenue to $28.24 billion, driven by a 43% surge in investment banking fees and strong trading performance, reflecting robust organic growth across all business lines.
Goldman Sachs is set to report strong third-quarter earnings driven by increased trading activity, a surge in investment banking fees, and a positive stock market environment, with expectations of $11 earnings per share and $14.1 billion revenue. The firm also announced the acquisition of Industry Ventures to strengthen its asset management division, and its shares have risen 37% this year.
The article discusses the upcoming third-quarter earnings reports of major U.S. banks, highlighting a surge in M&A and IPO activity that benefits investment banking revenues, with JPMorgan leading the sector. It also covers stock performance, valuation, and outlook for large banks amid ongoing economic and regulatory factors.
Goldman Sachs is set to report its Q3 earnings with expectations of $11.02 EPS and $14.1 billion revenue, driven by strong trading and investment banking performance. Analysts are cautiously optimistic, with some highlighting potential upside and others noting that much of the positive outlook may already be priced in. The stock has shown significant year-to-date gains, and options traders anticipate a 4.4% move post-earnings. Overall, Wall Street maintains a Moderate Buy rating with a slight upside potential.
The article highlights 25 young and influential professionals in Wall Street's finance industry, showcasing their backgrounds, career achievements, and roles in major deals across sectors like private credit, infrastructure, and technology, emphasizing their impact on the future of finance.
Vis Raghavan's strategic move to Citigroup has revitalized its investment banking division, positioning him as a potential successor to CEO Jane Fraser, amid significant restructuring and hiring efforts that have boosted the bank's dealmaking performance and market share.
JPMorgan Chase is expanding its mid-cap investment banking team by hiring three senior bankers to strengthen its dealmaking capabilities and better serve mid-sized companies and investors, amid increased market activity and recent growth in investment banking fees.
JPMorgan Chase is strengthening its consumer and retail investment banking team by hiring two senior bankers, Brian Esmond and Bryan Fleming, to support its growth in M&A and debt underwriting, with both expected to start later this year.