John Foley is Reuters Breakingviews' U.S. editor. He has previously written and edited from London, Beijing and Hong Kong, and established Breakingviews’ first Asian bureau in 2009, subsequently running the European team from 2015 to 2017. Before joining Breakingviews in 2004, John worked as a copywriter for a London-based advertising agency. He read English Literature at Exeter College, Oxford.
Bank of America followed JPMorgan and other peers with solid consumer banking results that propped up weak trading and investment banking. Falling rates and rising competition are risks, but it helps that Main Street customers generally can’t or don’t push hard for better deals.
The $77 bln Wall Street firm’s decent second quarter relied on gains from private-equity investments and equities traders who performed much better than some rivals. Boss David Solomon wants over time to downplay those volatile businesses. For now he’s probably glad he didn’t.
The perennial laggard of the big U.S. banks has been trying to win over shareholders with cash payouts and promises of cost cuts. It can now add faster revenue growth in credit cards and banking. That makes its turnaround story more credible – but there’s some ways to go yet.