Banks such as Goldman Sachs and Bank of America have reported that the anticipated resurgence in mergers and acquisitions during the Trump administration has not materialized. Despite expectations for a favorable business environment, uncertainty and a negative macroeconomic outlook have dampened deal-making activity. Citigroup's CEO Jane Fraser highlighted that clients are less confident, leading to a wait-and-see approach. Insiders from investment banks express embarrassment and disappointment regarding the administration's impact on the financial sector, particularly due to tariff policies that have created an atmosphere of instability.
"While our corporate and consumer clients are resilient and in good financial health, the world is in a wait-and-see mode and is facing a more negative macro outlook than anyone had anticipated at the beginning of the year," said Jane Fraser, Citigroup's CEO.
"I don't know how you couldn't be embarrassed about the outcome... If you're an executive in finance... there's no way you can't be upset," stated a managing director at a middle market-focused investment bank.
Many who backed Trump are now feeling less diplomatic about his administration and are experiencing disappointment regarding the impact on the M&A market.
...on every bank's first-quarter earnings calls, one person loomed over the proceedings: President Donald Trump... they talked about uncertainty, worried clients, and a concerning economic outlook.
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