Why Bank Profits Spark Populist Fury?
Key points
Major banks made $160B in profits while average wages grew under 4%, fueling populist anger over inequality, deregulation, and political corruption.
Key takeaway
The core conclusion is that the immense profits of major banks, reaching nearly $160 billion collectively in 2025 with CEO pay soaring over 21%, starkly contrast with modest wage growth for average Americans (under 4%). This disparity fuels populist anger, as these profits are seen as stemming from a system of deregulation, political influence, and practices like high credit card rates that extract wealth from the public. The narrative warns that while this populist energy makes financial elites nervous, their entrenched power and the structure of infinite stock market greed mean any economic crisis would still devastate ordinary citizens. The underlying issue is identified as systemic corruption through money in politics, which shields industries from accountability.
As Americans face job losses and a tough labor market, the CEOs of JP Morgan Chase, Bank of America, Citigroup, Goldman Sachs, Morgan Stanley, and Wells Fargo each earned $40 million or more last year. This represents a collective pay increase of more than 21% from 2024. In contrast, ordinary Americans saw an average wage increase of just under 4%. Combined, those six banks made almost $160 billion in profits last year.
This comes amid arguments from bankers, like JP Morgan's Jamie Dimon, against capping credit card interest rates, claiming it would hurt access to credit. Yet, with profits so high, the necessity for rates of 25-30% is questioned. Per the Wall Street Journal, bank success was driven by increased trading, mergers—which the FTC under Biden tried to limit—and large loans to corporations building AI infrastructure.
However, concern is growing among elites. Goldman Sachs CEO David Solomon flagged a potential slowdown this year and cited "populist uncertainty" from the US midterm elections as a new risk. This populist energy reflects a breach in traditional propaganda. Where establishment media once dismissed public complaint, online media now amplifies a fervor to look out for the average American, making bankers nervous.
The underlying problem is money in politics. The massive profits—$160 billion, not merely $16 billion—are driven by infinite stock market greed demanding ever-higher quarterly returns. This system is protected by a government deregulated through banking industry influence. Agencies like the Consumer Financial Protection Bureau, which recovered tens of billions for cheated Americans, were shut down under Trump with Republican support.
The excuse of needing huge profits for "innovation" is seen as comical. In banking, such innovation often means complex derivatives and collateralized debt obligations—the very instruments that crashed the economy in 2008. These are viewed as innovative ways to gamble with public money, socialize losses through bailouts, and privatize gains. The sentiment is clear: when crises hit, losses are dumped on the public with calls for bailouts and bonuses, a cycle that fuels widespread disgust.
The only innovation foreseen by some is among the American people themselves, imagining new forms of pushback against this entrenched greed. The warning to bankers is to reconsider their trajectory, as the populist tide is rising.
Frequently Asked Questions
Qany questions?
Please read the article carefully. If you have any questions, please contact [email protected].
Audio synthesized by Entity-Echo AI Agent