MW The biggest U.S. banks have something shocking to say: The economy is doing just fine
By Steve Goldstein
The consumer is fine, bank execs say, and talk about a 'K-shaped' economy - in which the rich are thriving but the rest of the economy is left behind - is exaggerated
The country's largest banks say the economy is doing just fine.
Consumer sentiment is near its lowest levels in the 59 years that the University of Michigan has been tracking it. Business sentiment isn't quite as dark, but it paints a picture of an economy limping along. From the high cost of living to tariffs, it seems everyone has something to complain about.
Except, that is, the top executives of the nation's biggest banks.
The consumer is fine, they said on Tuesday and Wednesday. This talk about a "K-shaped" economy - in which the rich are thriving but the rest of the economy is left behind - is exaggerated.
Bank of America Chief Financial Officer Alastair Borthwick, speaking to journalists, said the bank just isn't seeing this bifurcation.
"Occasionally we will show in our earnings materials performance of clients with FICO scores of 660 or lower. That is about 12% of our client base," he said. When discussing loan quality and delinquency rates, he said, "The shape of that group, over time, looks very similar to the path of the group that is above 660."
Jamie Dimon, chair and CEO of JPMorgan Chase - who infamously (and incorrectly) once warned that a "hurricane" was set to hit the U.S. economy - made similar comments.
"But I think when you're guessing what the macro environment is going to be, if you ask me, in the short run, call it six months and nine months and even a year, it's pretty positive," Dimon said, according to a transcript of the call with analysts provided by FactSet.
"Consumers have money. There's still jobs, even though it's weakened a little bit," Dimon said. He also talked about the stimulus coming from the GOP's One Big Beautiful Bill Act, passed last summer, and possible deregulation.
Dimon also discussed risks including geopolitics, deficits and Washington's ever-changing policy prescriptions, the latest being President Donald Trump's proposal to cap credit-card rates at 10%.
"And of course, we have to deal with the world we've got, not the world we want," he said. "We serve clients. We serve them left and right, and we'll deal and navigate with the politics and the issues that we have to deal with around the world and stuff like that."
None of the four big banks that have reported results over the last two days - JPMorgan $(JPM)$, Bank of America (BAC), Wells Fargo $(WFC)$ and Citi (C)- have reported any significant deterioration in credit quality.
"We look at things like checking accounts with unemployment flows, direct-deposit amounts, overdraft activity and payment outflows, and we've not observed meaningful shifts in trends," said Wells Fargo CEO Charlie Scharf.
The stock market, forward-looking as it usually is, may have already priced this optimism in. The KBW Nasdaq Bank Index BKX has gained 22% over the last 52 weeks.
-Steve Goldstein
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(END) Dow Jones Newswires
January 14, 2026 10:41 ET (15:41 GMT)
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