summed up: Last week, big US banks reported their second-quarter earnings.
Increased trading helped investment banks make some good announcements last week. With interest rates at historic lows, investors have jumped into the market and traded more than expected... and the Big Banks™ made phaaaaat commissions off the increased market activity. For banks like Bank of America, Wells Fargo, and Citigroup, this quarter's reports seem to end on a positive note. (Key word: seem).
What's the ☕?
The high-revenue reports pushed aside some valuable information... the banks cut $35B from their profits to cover for potential missed loan payments. This means... banks are bracing themselves for a bad economy. They just aren't sure how bad it's going to get. *deep breaths*
Read more here.