Big Banks shine on Q4 earnings, but risks loom ahead
Big Banks like JP Morgan (JPM), Citigroup (C), Goldman Sachs (GS), and Wells Fargo (WFC) reported strong profits in quarter four, ignited by a rebound in dealmaking and investment banking. Chris Whalen, chairman of Whalen Global Advisors, joins Morning Brief hosts Seana Smith and Brad Smith to analyze these results, highlighting JP Morgan's stability and conservative loan growth. Whalen explains, "JP Morgan's only half bank" and the "other half is the investment side," noting its good overall quarter was likely used as a credit build. He also discusses potential risks in corporate debt and real estate, noting corporate debt spreads are "as tight as they've been in years." "I think you're going to see financials, even with these good results, continue to give it back simply because people are worried about the economy," Whalen says. "Not consumers, but the commercial side: commercial real estate and particularly corporate debt." To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. This post was written by Josh Lynch