NEW YORK (AP) — Setting aside their current fight with the White House, things are looking good on Wall Street.
The latest trio of big banks reported their results Wednesday — Bank of America, Citigroup and Wells Fargo — and while each of them do different flavors of banking the theme is the same: profits are up, dealmaking is healthy, and the consumer is doing just fine.
“While any number of risks continue, we are bullish on the U.S. economy in 2026,” said Brian Moynihan, CEO and chairman of Bank of America, in a statement.
Moynihan added that businesses and consumers are “proving resilient.” Mark Mason, Citigroup's chief financial officer, used the same word to describe how consumers and businesses were doing.
"The U.S. economy is doing just fine. There’s downside risks out there, geopolitical risks in particular. But when I step back and look at it holistically, we have an economy that has managed uncertainty and risks in a resilient type fashion," Mason told reporters on Wednesday.
Up until last weekend, the big banks had found an ally in the White House in President Donald Trump. Trump signed the One Big Beautiful Bill into law in July, which pushed another significant round of tax cuts. Trump’s bank regulators have also been pushing a deregulatory agenda that both banks and large corporations have embraced. Many companies have embraced dealmaking last year, which led to a steady stream of investment banking revenues and fees to the big banks.
But now the banks and Trump are butting heads. Trump said Friday that he wants to cap interest rates on credit cards at 10%, and has been supportive of his Justice Department's investigation into Jerome Powell, the chairman of the Federal Reserve, which bankers see as a threat to the independence of the nation's central bank. Trump does not appear to be backing down on his attacks as well, doubling down in comments to reporters Tuesday night.
For these big banks, many of which have large and profitable credit card businesses, these banks argue that a credit card interest rate cap simply cannot happen.
“Affordability is a big issue and we look forward to collaborating with the administration on ways we can address this,” Mason with Citi said. “But an interest rate cap is not something we could or would support. It would restrict credit to those who need it the most and have a delirious impact on the economy.”
Bank executives told reporters they weren’t seeing much evidence of a “K-Shaped” economy, where the rich get richer and the bottom half do less well. Further, the consumer continues to spend and other metrics about consumer financial health like delinquencies and charge-offs remain stable.
Bank of America posted a profit of $7.6 billion, or 98 cents per share, up from $6.8 billion, or 83 cents per share, in the same period a year earlier. Revenue at the bank was $28.4 billion.
Wells Fargo earned a profit of $5.36 billion, or $1.62 per share, compared to a profit of $5.08 billion, or $1.43 a share, in the same period a year earlier on revenues of $21.3 billion.
At Bank of America, the bank reported a 6% increase in credit and debit card spending and credit card balances rose a manageable 3% year-over-year to $103 billion. Retail deposits also grew to $945.4 billion.
Wells Fargo’s credit metrics also told a similar story. The bank saw consumer loan growth and more activity on its credit cards, but delinquencies and charge-offs were relatively stable.
FILE - A Citibank office is open, Wednesday, Jan. 13, 2021 in New York. Citigroup reports their quarterly earnings, Thursday, Oct. 14, 2021. (AP Photo/Mark Lennihan, File)
FILE - A Wells Fargo office in New York, displays its logos at its ATM, Jan. 13, 2021. (AP Photo/Mark Lennihan, File)
FILE - A Bank of America ATM is seen, Wednesday, Feb. 3, 2021, in Winchester, Mass. (AP Photo/Elise Amendola, File)
BARCELONA, Spain (AP) — Spanish prosecutors are studying allegations that Grammy-winning singer Julio Iglesias sexually assaulted two former employees at his residences in the Dominican Republic and the Bahamas.
The Spanish prosecutors’ office told The Associated Press on Wednesday that the allegations were related to media reports from earlier this week that alleged Iglesias had sexually and physically assaulted two women who worked in his Caribbean residences between January and October 2021.
Iglesias has yet to speak publicly regarding the allegations. Russell L. King, a Miami-based entertainment lawyer who lists Iglesias as a client on his website, didn't immediately respond to a request for comment by the AP.
The Spanish prosecutors’ office that handles cases for Spain’s National Court said that it had received formal allegations against Iglesias by an unnamed party on Jan. 5. Iglesias could potentially be taken in front of the Madrid-based court, which can try alleged crimes by Spanish citizens while they are abroad, according to the court’s press office.
Women’s Link Worldwide, a nongovernmental organization, said in a statement that it was representing the two women who had presented the complaint to the Spanish court. The group said that the women were accusing Iglesias of “crimes against sexual freedom and indemnity such as sexual harassment” and of “human trafficking for the purpose of forced labor and servitude.”
The organization said the women in their testimony also accused Iglesias of regularly checking their cellphones, of prohibiting them from leaving the house where they worked and demanding that they work up to 16 hours a day, with no contract or days off.
The organization said it did not reach out to authorities in the Bahamas or the Dominican Republic, and that it didn't know whether authorities in those Caribbean nations have initiated an investigation.
Gema Fernández, senior attorney at Women's Link Worldwide, said in an online press conference Wednesday that "Spanish legislation regarding sexual violence, gender-based violence and trafficking could be an interesting option" for the two women making the allegations against Iglesias.
“Listening to what (the two women) are seeking and their definitions of justice, it seems to us that filing a complaint with the Public Prosecutor’s Office of the National Court of Spain was the path that best suited their definition of justice. That is why we are supporting them along this path,” Fernández said.
Jovana Ríos Cisneros, executive director of Women’s Link Worldwide, asserted that Spanish prosecutors have decided to take statements from the two women and granted them the status of protected witnesses.
“Being heard by the Prosecutor’s Office is a very important step in the search for justice,” she said.
Fernández said prosecutors have not set a date to take statements from the women and noted that prosecutors have up to six months to determine whether the information they receive warrants a criminal prosecution. Those six months could exceptionally be extended to a year, she added.
The Prosecutor's Office did not immediately return a message seeking comment.
Spanish online newspaper elDiario.es and Spanish-language television channel Univision Noticias published the joint investigation into Iglesias’ alleged misconduct.
Ríos said the two women initially contacted elDiario.es, which began investigating the allegations but also advised the women to seek legal help.
Spanish government spokeswoman Elma Saiz said that the media reports regarding Iglesias “demanded respect.”
“Once again I can reaffirm this government’s firm and complete commitment to take on any act of violence, harassment or aggression against women,” Saiz said Tuesday after the media reports were published.
Panky Corcino, spokesman for the Attorney General’s Office in the Dominican Republic, declined to comment, saying he couldn't confirm or deny an investigation.
By law, any case in the Caribbean country that involves sexual aggression or violence must be investigated by prosecutors, even if no one has filed a complaint.
The 82-year-old Iglesias is one of the world’s most successful musical artists after having sold more than 300 million records in more than a dozen languages. After making his start in Spain, he won immense popularity in the United States and wider world in the 1970s and ‘80s. He’s the father of pop singer Enrique Iglesias.
Julio Iglesias won a 1988 Grammy for Best Latin Pop Performance for his album “Un Hombre Solo.” He also received a Lifetime Achievement Award at the Grammys in 2019.
Spain’s culture minister said Wednesday that its left-wing government, which holds women’s rights and equality among its priorities, will also consider stripping Iglesias of the state’s Gold Medal of Merit in the Fine Arts that he was awarded in 2010.
“It is something we are studying and evaluating, because evidently we feel obliged to do so when faced by such a serious case,” Culture Minister Ernest Urtasun said.
Coto reported from San Juan, Puerto Rico. Associated Press reporters Suman Naishadham in Madrid and Martín Adames in Santo Domingo, Dominican Republic, contributed to this report.
FILE - Spanish singer Julio Iglesias smiles during his star unveiling ceremony at the Walk of Fame in San Juan, Puerto Rico, Thursday, Sept. 29, 2016. (AP Photo/Carlos Giusti, file)
