Banking

Big banks cash in on consumers

llustration of a supermarket basket with a bank inside
Illustration: Sarah Grillo/Axios

The flush U.S. consumer is lifting profits for the big banks, busily pouring free cash into savings and checking accounts while spending on credit cards and borrowing money to buy homes.

Why it matters: The strength and optimism of the American consumer continue to underpin the record-long economic recovery — and stand as a contrast to the gloomy outlook expressed lately by business leaders. "There's solid consumer activity across the board," said Bank of America's CEO, Brian Moynihan, echoing sentiment from his competitors at JPMorgan Chase, Citigroup and others.

Deutsche Bank announces major restructuring

Deutsche Bank flags fly outside the bank's annual meeting.
Flags with the Deutsche Bank logo. Photo: Arne Dedert/picture alliance via Getty Images

Deutsche Bank on Sunday announced a massive restructuring that is designed to revive Germany's largest lender.

  • It will exit its global equities sales and trading unit, make big cuts in its fixed income operation (particularly its rates business), and create a "bad bank" with around €74 billion ($83 billion) of risk-weighted assets.

The bottom line: This comes after Deutsche Bank failed to merge with local rival Commerzbank, and it means Deutsche is giving up (for now) on becoming a top player on Wall Street.