Wall Street's biggest banks are heading for one of their strongest trading years on record, raising a question for investors whether will this be a repeat of 2009, when a similar record money was raked in. JPMorgan, Goldman Sachs and the other major Wall Street banks are on pace for their best trading years ever after a second-quarter surge in market activity, according to The Wall Street Journal.
In earlier cycles, such big trading hauls often came during periods of stress. For several banks, the last record year was 2009, when markets were still recovering from the global financial crisis. This time, the backdrop is different. dealmaking is recovering, AI-linked trading remains active and investors are using more short-dated options, ETFs and single-stock bets. The WSJ reported that the biggest banks could generate about $180 billion in combined trading revenue if the current pace continues.
