this post was submitted on 14 Apr 2024
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[–] alvvayson@lemmy.dbzer0.com 3 points 7 months ago (1 children)

If you want to call BlackRock a bank...

Then you're gonna be right in your bubble, but it's a pretty big leap. And you won't find many people agreeing with you.

And no, banks are making profits again with rising interest rates. They were making way lower profits at low interest rates.

In terms of being disconnected from reality, I think you're projecting.

[–] Spiralvortexisalie@lemmy.world 2 points 7 months ago (1 children)

They are an investment company, they take assets and invest them, similar to how a bank takes deposits and uses it to lend. That one is open to regular deposits and the other is more exclusive is not the hill to die on. Also are you able to name banks that are enjoying the rate hikes? Because literally just this week a few banks such as Citi and JPMorgan revised their outlooks downward since they no long see interest rate cuts coming this year.

[–] alvvayson@lemmy.dbzer0.com 2 points 7 months ago

Right, investment company.

In particular, they are Not a Bank.

If you just Google you will see JPM and Citi did quite badly under the low interest regime and bounced back after interest rates went up.

Citi had a more pronounced bump with Covid stimulus.

https://www.macrotrends.net/stocks/charts/JPM/jpmorgan-chase/gross-profit

https://www.macrotrends.net/stocks/charts/C/citigroup/gross-profit

They are still making nice profits, but Apple and Microsoft are at no risk of being overtaken by any bank any time soon.