Fear & Loathing on Wall Street: GS, MS, AMP, SCHW, RJF, SF

April 8, 2025 | Premium Service | Below we provide a summary of last week’s conference call with the subscribers to our Premium Service. We also set up Q1 2025 earnings in the wake of the biggest equity selloff since the outbreak of COVID in 2020 and the collapse of the market for US Treasury securities in March of that year. JPMorgan (JPM) CEO Jamie Dimon says thar the new trade initiatives should be resolved quickly and that is, of course, the hope, but meanwhile trillions of dollars in inflated paper wealth is being destroyed by the Trumpian wave. 

The WGA Bank Top 100 Index has given back virtually all of the gains made in 2024 and then some. Notice in the chart below showing the top 103 public banks in Peer Group 1 by market cap that Flagstar Bank (FLG) is currently the top performer. We sort the group based upon three-month total return (starting from left). FLG is at the top, largely because the stock has not moved while the rest of the group has fallen. Some of the largest banks by assets have dropped from the top quartile into the bottom half of the distribution, with Bank of America (BAC) and American Express (AXP) now in the bottom quartile.

Source: Bloomberg (04/07/2025)

Last week in the conference call for our subscribers, we made several basic points about the current market environment.

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