U.S. banks' dismal first quarter may spell trouble for 2016
Analysts predict a bad quarter for the financial sector predicting a decline in earnings for top U.S banks like Goldman Sachs, J.P. Morgan and others.
Several reasons have been attributed to this decline such as the increasingly low oil prices, low interests rates as well as China's economic growth.
As we know from the IS-LM model, a change in the equilibrium of the financial market will have repercussions for the goods market as well.
A number of banks have criticized new regulations that have been put in place for financial institutions since the 2008 global recession, however it remains to be seen whether the loss in revenue-generation can be contained later in the year and whether the end of 2016 may see more returns than the beginning.
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