Steve Sosnick, Interactive Brokers’ chief strategist, discusses his takeaways from the leading financial institutions’ activity during earnings season.
Sosnick says that the banking sector is hard to read. Leading financial institutions all do slightly different things.
JPMorgan Chase (JPM) and Bank of America (BAC) are frozen into place because they can’t expand their deposit base thanks to federal rules limiting size.
Takeaway
Other banks specialize in certain financial services such as custodial services and foreign exchange trading.
As a result, the banking sector doesn’t tell us much about the larger economy, according to Sosnick.
Photo Credit: Shinya Suzuki via Flickr Creative Commons
