Largest US banks' trading assets near $3.7 trillion, St. Louis Fed says
Trading assets at the largest U.S. banks reached $3.7 trillion in Q2 2026, up 50% since 2024, according to the St. Louis Fed. These assets, including securities and derivatives, represent 20% of assets at U.S. global systemically important banks (GSIBs). The eight GSIBs include Bank of America, Citigroup, JPMorgan Chase, and others. Trading revenue was $117 billion in 2025, up from $62 billion in 2022.
How this was made
The 30-second read
Why it matters
The data suggests expanding capital‑markets balance sheets, which may lift trading revenue and earnings for the listed banks, while also indicating higher systemic risk.
Market read
The report provides fresh macro‑level insight into U.S. banking sector capital‑markets exposure, useful for traders monitoring financial stocks and sector risk.
What to watch
Regulatory capital rule changes and potential future rate moves may offset the benefits of larger trading books.
Background
The St. Louis Fed released a new analysis showing a 50% increase in trading assets for the eight largest U.S. global systemically important banks, reaching $3.7 trillion in Q2 2026.
Ticker impact
Bank of America is listed among the eight GSIBs whose trading assets grew to $3.7 trillion, indicating a sizable increase in its capital‑markets balance sheet.
potential upside as market prices in larger trading book capacity
The Fed data shows a 50% rise in trading assets, which historically correlates with higher trading income.
Bank of New York Mellon is included in the Fed’s list of banks with surged trading assets, suggesting expanded balance‑sheet leverage.
moderate upside as investors price higher trading income potential
Trading asset growth signals more activity in securities servicing and market‑making.
Citigroup appears in the Fed’s analysis of eight banks whose trading assets now total $3.7 trillion, reflecting a large increase in its market‑making exposure.
potential upside as the market anticipates higher trading profits
The surge in trading assets suggests more capital allocated to market‑making activities.
Goldman Sachs is named among the eight GSIBs with a 50% rise in trading assets, indicating a larger balance‑sheet for capital‑markets activities.
likely upside as investors price in higher trading income
Trading asset growth historically supports higher earnings for GS.
JPMorgan Chase is listed as one of the eight banks whose trading assets surged to $3.7 trillion, implying expanded market‑making capacity.
moderate upside as the market anticipates higher capital‑markets earnings
The Fed data signals a sizable increase in JPM’s trading book.
Morgan Stanley is part of the Fed’s eight‑bank group with sharply higher trading assets, suggesting more capital allocated to trading operations.
potential upside as investors factor in larger trading assets
Growth in trading assets often translates to higher revenue for MS.
State Street is included among the eight banks with $3.7 trillion in trading assets, indicating a significant expansion of its market‑making balance sheet.
moderate upside as the market prices higher trading capacity
Larger trading assets can boost fee and spread income for STT.
Wells Fargo appears in the Fed’s analysis of eight banks whose trading assets rose sharply, pointing to a larger capital‑markets footprint.
potential upside as investors anticipate more trading income
The increase in trading assets suggests expanded market‑making activity for WFC.
Market effects
The rise in trading assets across major banks signals stronger capital‑markets activity, potentially boosting the broader financial services sector.
U.S. banking sector may see modest price appreciation as investors price in higher trading revenue potential.
Global investors track U.S. GSIB trading book growth as a barometer for worldwide market‑making capacity.
Counterpoint
Higher trading assets could increase risk exposure and volatility, potentially weighing on earnings if market conditions deteriorate.
Key entities
- Regulatory InstitutionFederal Reserve Bank of St. Louis
Published the analysis on trading assets.
- AnalystMichelle Clark Neely
Visiting scholar who authored the report.
