With deals booming and regulations lightened, bankers are back on top

Banks in the U.S. are enjoying a resurgence in 2026, marking a shift from years of private equity dominance. Trading profits and employee bonuses are at record highs, while mergers, acquisitions, and other deals are surging at the second-fastest pace in a decade, generating billions in fees. The Trump administration’s relaxed regulations have allowed banks to expand and take on more risk, creating favorable conditions unseen in decades, according to Citi analysts. For nearly two decades, banks operated under strict regulatory constraints, but recent policy changes have eased these restrictions. This shift comes as private equity firms struggle with poor investment returns and difficulty raising capital. Meanwhile, banks like Citizens Bank—based in Providence, R.I.—have seen their stock prices rise over 50% in a year, driven by acquisitions and expansion into high-net-worth markets. JPMorgan Chase and other major banks reported nearly $50 billion in trading revenue in the first quarter alone, a record high. The Middle East conflict, which has caused market volatility, has paradoxically boosted trading volumes, benefiting banks. JPMorgan’s prime brokerage balances for wealthy clients are also at an all-time high, reflecting renewed confidence in financial markets. Dealmaking has rebounded sharply under the Trump administration, which has streamlined antitrust oversight compared to the Biden era. Banks are now poised to earn billions in commissions from high-profile IPOs, including potential listings for SpaceX, Anthropic, and OpenAI. The combination of regulatory relief, strong trading activity, and a surge in corporate deals has created an optimistic outlook for the banking sector.