In early 2020, no one (least of all the largest commercial banks) expected anything but doom and gloom.
Jamie Dimon, CEO of JPMorgan Chase, noted in his annual shareholder letter, “We don’t know exactly what the future will hold — but at a minimum, we assume that it will include a bad recession combined with some kind of financial stress similar to the global financial crisis of 2008.”
Fortunately for everyone, those dire predictions have so far proved wrong, thanks to the Fed slashing rates to record lows while pumping billions into the economy. Indeed, for all the tumult and stress, banks may someday look back on the COVID era as magical, at least from a profit perspective.
Per the FDIC, over the last 18 months, net profits from all insured institutions topped $421.7 billion – the highest ever over any prior 18-month stretch.
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