Grim earnings spell trouble for U.S. banks, Don Kaufman says in TV interview

The numbers tell the story. Citigroup – 46%. Goldman Sachs – 42%. Wells Fargo – 21%. Earnings reported last Thursday by big U.S. banks demonstrates that managing risk in an unstable environment is horrific for them, says Don Kaufman, chief market strategist at TheoTrade. Inflation and the war in Ukraine have taken its toll on bank earnings. Many of the banks have invested in Russian and Ukrainian bonds and businesses. Some of those loans won’t be paid back. Citigroup could lose up to $3 billion due to fallout from the invasion of Ukraine.