There’s no end to the fireworks. Last week Bank of America and JP Morgan published outstanding results, and on Monday it was the turn of Goldman Sachs. Faced with this spectacle, an observer could be forgiven for asking the simplistic question: How is this possible?
After all, the newspapers are full of reports about bank crises. Basic conditions are bad: Rock-bottom interest rates are eating up margins. Trading is down and markets are unpredictable. On some days, all the agitation about Deutsche Bank is reminiscent of the financial crisis.
But the news from America is quite different. Revenues are up, and stock prices are climbing.