Watch Desk posted an update
Goldman Sachs, JPMorgan and Morgan Stanley have made a combined $52 billion from equities trading so far this year, nearly 80% of the five biggest investment banks’ total, CNBC reports.
Why it mattersCNBC says demand for leveraged bets on AI hardware and Asian semiconductor suppliers has helped drive the gains. Goldman’s equities financing revenue jumped 96% in the third quarter to a record $3.37 billion. The boom is lucrative, but it also links bank earnings to crowded, leveraged bets on AI. The figures are not perfectly comparable across banks, and the IMF has warned that leverage and correlated selling could threaten financial stability.
Discuss: Is this a durable AI-driven business for the banks, or a risky trade that looks safer while markets keep rising?
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