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Goldman Sachs's net earnings rose 12% from a year earlier,
posting a profit of $4.62 billion, or $14.01 a share. Meanwhile
Morgan Stanley said it earned $4.4 billion, or $2.68 per share,
compared to a profit of $3.71 billion, or $2.22 per share,
compared to a year earlier.
Wall Street has been bolstered by the Trump administration's
deregulatory policies, which has led corporations to seek out
mergers and acquisitions, as well as the surge of investor
interest in artificial intelligence companies and those who
stand to benefit from the mass adoption of technologies like
ChatGPT.
Fourth-quarter investment fee revenues over at Goldman were up
25% year-over-year and Morgan Stanley saw a 47% jump in revenue
in its investment banking division. Both banks said their
investment fee backlog, which is a signal of how much deal
making is still pending that banks are working on, increased
significantly in the fourth quarter.
Goldman and Morgan's results reflect the strong earnings out of
the other big banks that reported their results this week.
JPMorgan Chase, Bank of America and Citigroup all saw jumps in
fourth-quarter profits, but their results were dampened by the
ongoing tensions that Wall Street is having with the White House
over the issue of the independence of the Federal Reserve and
President Donald Trump's interest in capping credit card
interest rates at 10%.
Along with a strong investment banking performance, Goldman
Sachs also agreed to sell off its Apple Card credit card
portfolio to JPMorgan Chase last week, effectively exiting its
brief experiment in consumer banking. The bank sold the credit
card portfolio at a discount to JPMorgan, a sign of how
desperately Goldman wanted to exit the business and put the
Apple Card behind it.
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