KBW CEO Sees 'A Reset Underway' in Bank Earnings

The transcript discusses the market's reaction to bank earnings, highlighting a lag in broader bank indexes due to uncertainties about regional banks' earnings and a reset in net interest income and deposit costs. Despite good earnings from big banks, stock prices fell, indicating concerns about deposit remixing. Credit issues remain a concern, and profitability estimates for banks have been cut by 20%. The impact is felt across the industry, with spread income lenders facing pressure. Investment banking is expected to have a tough second quarter, though some positive signs are emerging.

What challenges are expected for investment banking in the second quarter?

What does the term 'spread compression' refer to in the context of banking?