U.S. bank lending to shadow banks, including private credit and hedge funds, surged to $1.47 trillion by early 2026, a 2,518% increase since 2010. This growth far outpaces traditional lending categories like mortgages and small business loans, which remain stagnant or slow. The surge follows significant deregulation starting in 2025, including the removal of Wells Fargo's asset cap and eased capital requirements, enabling banks to deploy excess capital into shadow banking. Regulators warn this rapid growth poses systemic risks due to high leverage and interconnectedness, reminiscent of pre-2008 financial crises. The shift raises concerns about credit allocation away from Main Street and increased financial instability risks.
Wells Fargo reported strong Q2 2026 adjusted earnings per share of $1.96, beating estimates and showing growth from last year. Revenue increased by 9%, supported by higher net interest and non-interest income. An analyst upgraded the stock with a new...
Wells Fargo reported strong second-quarter results, with revenue up 9% year-over-year and net earnings rising 17%. The growth was driven by robust commercial loan origination and a 5% increase in net interest income to $12.3 billion, supported by a 1...
Wells Fargo reported strong Q2 2026 results with earnings per share of $2.00 and revenue of $22.62 billion, both exceeding analyst expectations. The growth was driven by strong fee income and better credit performance. Despite this, the stock price d...
Wells Fargo reported Q2 earnings of $2 per share, surpassing the $1.72 estimate, driven by strong fee income and improved credit quality that offset pressure on net interest margins. Revenue reached $22.62 billion, beating expectations, with net inco...
JPMorgan Chase reported the highest profit ever for a US bank at $21.2 billion, driven by strong corporate dealmaking and consumer spending. Other major banks like Goldman Sachs, Wells Fargo, and Bank of America also exceeded earnings expectations, b...
