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‘Resilient’ Banks Ride Out Iran War Storm; Kevin Warsh’s Wealth Disclosed
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Good morning, CFOs. U.S. financial services firms ride out Iran war headwinds; the real price for a barrel of oil?; plus, a Renaissance in downtown Cleveland.
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JPMorgan Chase headquarters in New York. SARA KONRADI FOR WSJ
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JPMorgan Chase, Citigroup and Wells Fargo are providing the latest snapshot of their fiscal health this week, noting that customers continued to spend, borrow and invest in the first quarter.
Top of mind is how the Iran war and investor concerns about the risks from artificial intelligence, inflation and private credit may be impacting the bottom line, Gina Heeb and Alexander Saeedy write. The three banks earned a collective $27.53 billion in the first quarter, a 17% boost from a year earlier.
CFOs from some of the nation’s largest banks say they are showing solid resilience in the face of many headwinds, noting in their latest earnings that:
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JPMorgan released reserves set aside for losses in its consumer bank, a sign that it believes customers’ finances are healthy. Provisions for credit losses fell some 24% versus last year. Better-than-expected U.S. unemployment data also helped persuade the bank not to lean too conservative in its expected losses, Chief Financial Officer Jeremy Barnum told reporters.
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Key quote: “When we looked at it holistically, we just concluded that it wasn’t appropriate to make that any worse, despite the uncertainty in the environment,” Barnum said.
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Wells Fargo has seen consumers spend somewhere between 25% and 30% more on fuel than before the conflict started, CFO Mike Santomassimo said on a call with reporters. But “overall spend continues to be quite resilient and quite strong.”
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And Citigroup’s CFO Gonzalo Luchetti said that the bank’s total assets of $2.8 trillion increased 5%, driven by growth in trading-related assets, cash and loans. “We are a source of resilience and strength for our clients in a range of environments,” Luchetti said on the earnings call.
Next up? Bank of America, Morgan Stanley and other firms report on Wednesday. For more earnings news, click here.
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Meanwhile, the International Monetary Fund trimmed its global growth outlook on Tuesday due to the war and blockade, citing oil price increases. The IMF cut its 2026 global GDP growth “reference forecast” to 3.1% assuming a shorter-term Iran war.
For more analysis of the latest ripple effects from the Middle East war, keep on reading...
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Content from our sponsor: Deloitte
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For CFOs, Cost Management Can Drive Value Creation
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Consider how cost management can evolve from a reactive role within the budget process to a way to respond to unexpected events while supporting AI investments and other strategic opportunities. Read More
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📆 Earnings
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Bank of America
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J.B. Hunt Transport Services
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Morgan Stanley
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M&T Bank
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PNC Financial Services Group
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Progressive
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SL Green Realty
📈 Economic Indicators
The National Association of Home Builders releases its Housing Market Index for April.
The Federal Reserve releases the beige book for the third of eight times this year.
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A warship near the Strait of Hormuz. WSJ
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No ships out of Iranian ports. U.S. Central Command said it has effectively blocked all ships out of Iran’s ports within its first 24 hours. More than 10,000 U.S. sailors, Marines and airmen were involved in the mission. Meanwhile, Saudi Arabia is pressing the U.S. to drop its blockade of the Strait of Hormuz.
$133 vs. $99 oil? What is the real price for a barrel of crude, asks Jinjoo Lee in our latest Heard on the Street column.
An $11 billion deal. Amazon.com is buying satellite operator Globalstar in a deal the companies estimated at about $10.8 billion, seeking to build a business connecting consumer smartphones with satellite internet connections.
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What Else Matters to CFOs
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Kevin Warsh’s financial holdings appear to exceed those of past Fed chair nominees. DAVID PAUL MORRIS/BLOOMBERG NEWS
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Kevin Warsh, President Trump’s choice to lead the Fed, is a juggernaut in the wealth department.
Warsh, 56 years old, disclosed a sprawling set of financial interests worth more than $100 million, including stakes in Elon Musk’s SpaceX and prediction-market firm Polymarket. (Warsh listed two holdings in a vehicle called the “Juggernaut Fund” each worth more than $50 million.)
The holdings underscore Warsh’s ties to Wall Street and Silicon Valley. The filing, released by the Office of Government Ethics on Tuesday, also reflects new urgency to move his confirmation forward.
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On Cleveland’s Public Square plaza, the May Company building, formerly a department store, now houses apartments. CREDIT: MARTA XOCHILT PEREZ FOR WSJ
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The WSJ CFO Council convenes the world’s top financial leaders so they can gain perspective on navigating market uncertainty, aligning priorities and making decisions that deliver measurable results. Join this trusted community where CFOs exchange approaches, access strategic insights and continuously sharpen their influence across the enterprise.
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Marsh, the New York-based professional services and insurance brokerage firm, said Finance Chief Mark McGivney is assuming the additional roles of executive vice president and chief operating officer, effective Wednesday. McGivney has served as Marsh’s CFO for over a decade.
—Elias Schisgall contributed to today’s Ledger.
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The Wall Street Journal's CFO Journal offers corporate leaders and professionals CFO analysis, advice and commentary to make informed decisions. We cover topics including corporate tax, accounting, regulation, capital markets, management and strategy. Follow us on X @WSJCFO. The WSJ CFO Journal Team comprises reporters Kristin Broughton, Mark Maurer and Jennifer Williams, and Bureau Chief Walden Siew. You can reach us by replying to any newsletter, or email Walden at walden.siew@wsj.com.
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