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European banks won’t follow Wall Street’s $33bn trading gold rush

US banks have steadily come to overtake European peers, not just in markets and trading, but in the industry overall — and the pandemic has accelerated the trend

A worker checks gold granulate at a plant of gold refiner and bar manufacturer Valcambi SA in the southern Swiss town of Balerna.
A worker checks gold granulate at a plant of gold refiner and bar manufacturer Valcambi SA in the southern Swiss town of Balerna. Photo: Michael Buholzer/Reuters

When Goldman Sachs’ earnings report landed on 15 July, analysts were amazed. The bond trading unit posted its best quarter in nine years. The markets division almost doubled its revenues since last year, surging to $7.2bn.

Goldman wasn’t alone. All across Wall Street, earnings reports showed a similar theme — traders absolutely killed it during the quarter, and trading units made up bigger-than-ever chunks of bank profits.

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