A blend of equity, private debt and public investment drove the country’s growth in the Industrial Revolution. To remain globally competitive, the U.S. needs more creative financing of large infrastructure projects, writes Gregory Bernstein, of The New Industrial Corporation.
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AtJPMorgan Chase, revenue recently surged 21%, to $7 billion. The bank has never had a better fourth quarter. The equities business atGoldman Sachs raked in $13.4 billion for 2024, another record-setting result.Morgan Stanley far exceeded analysts’ expectations in the fourth quarter, as well. Despite some temporary shocks caused by policy uncertainty from the new administration, 2025 has also shown strong performance so far. But Wall Street’s blockbuster results obscure a larger, structural problem with the finance community’s approach to the many serious challenges we face today — playing a reactive game of whack a mole with each new crisis that pops up.
Whether it’s the apocalyptic images of whole neighborhoods razed by wildfires in Los Angeles (or hurricane-battered cities like Houston and Tampa before that); the economic dislocations caused by American tariffs on our largest trade partners and further inflation; or the intense uncertainty surrounding the emergence of generative AI, perpetual crisis seems to be the new normal. And the finance community — while flush and in the mood for dealmaking — is trapped in a reactive stance, unable to take a more proactive, thoughtful and strategic approach that anticipates the ways in which our world is transforming.
What would that approach look like?
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First, it would acknowledge the need for significant industrialization: lithium processing facilities, modular nuclear reactors, biomanufacturing plants, compute capacity and novel electrical assembly operations. For far too long, Wall Street’s capital has flowed primarily to digital and consumer-focused assets, while heavy industry — increasingly indispensable to economic security — has struggled to attract the scale of financing required to thrive in the new, globally hypercompetitive era that’s now upon us.
Second, it would recognize that the benefits of these investments — though they will take years to materialize — are essential to whether we continue to win, and that to meet the moment, Wall Street needs to quickly align itself with this long-term vision.
Third, a better approach can help realize a new industrial asset class: the bio-manufacturing plants, the networks of data centers we desperately need, and the specialty manufacturing for tool and die making. But only if we figure out how to finance them.
If capital markets fail to support new industrial projects — from new semiconductor foundries to clean energy infrastructure — the U.S. risks falling behind, ceding industrial and technological leadership to foreign competitors. Our ambitions will only be realized if private investment, public policy and industry innovation work in tandem, and work fast.
History reminds us of what’s at stake if we don’t adapt and how entire nations have fallen behind in worst-case scenarios.
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Germany’s shift to renewable energy starting in the early 2000s was not immediately matched by its financial sector, which was slow to finance renewable projects. It took years before banks and investors fully backed the transition, leaving much of the early capital needs to government subsidies. Similarly, despite the rapid adoption of mobile payments worldwide in the 2010s, many Indian banks were initially slow to invest in digital infrastructure. This misstep allowed third-party tech players like Paytm to dominate the market while major banks had to play catch-up.
But history has also shown that when markets adjust to emerging challenges, those ready to think creatively and embrace change stand to gain the most.
To remain resilient, the United States needs to pivot to new models of blended finance to invest in new industrial infrastructure. Established financial players, alongside venture firms, family offices and institutional investors have a vital role to play in marshaling resources for this new era. We can meet this challenge by providing targeted products that address the needs of this “missing middle” — those ventures too large for venture capital alone but not yet suited to traditional public markets.
We’ve done it before. Finance can be an adaptive industry. Consider the rise and dominance of investment banking in the 1980s, spurred by deregulation, relaxed antitrust laws and lower taxes. Or Wall Street shifting to accommodate the rise of personal technology in the 1990s. Similarly, the growth of the internet and new methods of electronic trading demolished barriers to entry and spawned thousands of lucrative hedge funds.
In facing another industrial revolution, we would do well to remember the lessons of an earlier success, beginning in the 1870s. With European powers asserting new imperial dominance abroad, the U.S. faced pressure to strengthen its economic foundations at home. This competitive landscape spurred the American government and private sector to adopt innovative financing models, particularly in building the transcontinental railroads that became the backbone of economic growth and innovation. Blended financing that combined equity, private debt and public investment enabled these massive infrastructure projects to materialize, creating a resilient economy capable of holding its own amid turbulent geopolitical shifts.
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If the private sector, policymakers and investors fail to evolve now, the promise of this new era will remain elusive. A commitment to reshaping American manufacturing with a focus on innovation and productivity could hold the key, but only if we recognize the urgency and act accordingly. As we enter a new age as a nation, America is faced with a choice: Either continue with the status quo that only reacts to the latest dislocation or adapt by adopting an economic model that unlocks a new industrial revolution.
My spreadsheet reviewed a WalletHub ranking of financial distress for the residents of 100 U.S. cities, including 17 in California. The analysis compared local credit scores, late bill payments, bankruptcy filings and online searches for debt or loans to quantify where individuals had the largest money challenges.
When California cities were divided into three geographic regions – Southern California, the Bay Area, and anything inland – the most challenges were often found far from the coast.
The average national ranking of the six inland cities was 39th worst for distress, the most troubled grade among the state’s slices.
Bakersfield received the inland region’s worst score, ranking No. 24 highest nationally for financial distress. That was followed by Sacramento (30th), San Bernardino (39th), Stockton (43rd), Fresno (45th), and Riverside (52nd).
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Southern California’s seven cities overall fared better, with an average national ranking of 56th largest financial problems.
However, Los Angeles had the state’s ugliest grade, ranking fifth-worst nationally for monetary distress. Then came San Diego at 22nd-worst, then Long Beach (48th), Irvine (70th), Anaheim (71st), Santa Ana (85th), and Chula Vista (89th).
Monetary challenges were limited in the Bay Area. Its four cities average rank was 69th worst nationally.
San Jose had the region’s most distressed finances, with a No. 50 worst ranking. That was followed by Oakland (69th), San Francisco (72nd), and Fremont (83rd).
The results remind us that inland California’s affordability – it’s home to the state’s cheapest housing, for example – doesn’t fully compensate for wages that typically decline the farther one works from the Pacific Ocean.
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A peek inside the scorecard’s grades shows where trouble exists within California.
Credit scores were the lowest inland, with little difference elsewhere. Late payments were also more common inland. Tardy bills were most difficult to find in Northern California.
Bankruptcy problems also were bubbling inland, but grew the slowest in Southern California. And worrisome online searches were more frequent inland, while varying only slightly closer to the Pacific.
Note: Across the state’s 17 cities in the study, the No. 53 average rank is a middle-of-the-pack grade on the 100-city national scale for monetary woes.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
The up-and-coming fintech scored a pair of fourth-quarter beats.
Diversified fintech Chime Financial(CHYM +12.88%) was playing a satisfying tune to investors on Thursday. The company’s stock flew almost 14% higher that trading session, thanks mostly to a fourth quarter that featured notably higher-than-expected revenue guidance.
Sweet music
Chime published its fourth-quarter and full-year 2025 results just after market close on Wednesday. For the former period, the company’s revenue was $596 million, bettering the same quarter of 2024 by 25%. The company’s strongest revenue stream, payments, rose 17% to $396 million. Its take from platform-related activity rose more precipitously, advancing 47% to $200 million.
Image source: Getty Images.
Meanwhile, Chime’s net loss under generally accepted accounting principles (GAAP) more than doubled. It was $45 million, or $0.12 per share, compared with a fourth-quarter 2024 deficit of $19.6 million.
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On average, analysts tracking the stock were modeling revenue below $578 million and a deeper bottom-line loss of $0.20 per share.
In its earnings release, Chime pointed to the take-up of its Chime Card as a particular catalyst for growth. Regarding the product, the company said, “Among new member cohorts, over half are adopting Chime Card, and those members are putting over 70% of their Chime spend on the product, which earns materially higher take rates compared to debit.”
Today’s Change
(12.88%) $2.72
Current Price
$23.83
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Key Data Points
Market Cap
$7.9B
Day’s Range
$22.30 – $24.63
52wk Range
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$16.17 – $44.94
Volume
562K
Avg Vol
3.3M
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Gross Margin
86.34%
Double-digit growth expected
Chime management proffered revenue and non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance for full-year 2026. The company expects to post a top line of $627 million to $637 million, which would represent at least 21% growth over the 2024 result. Adjusted EBITDA should be $380 million to $400 million. No net income forecasts were provided in the earnings release.
It isn’t easy to find a niche in the financial industry, which is crowded with companies offering every imaginable type of service to clients. Yet Chime seems to be achieving that, as the Chime Card is clearly a hit among the company’s target demographic of clientele underserved by mainstream banks. This growth stock is definitely worth considering as a buy.
ROCHESTER, N.Y. — Student athletes are now earning real money thanks to name, image, likeness deals — but with that opportunity comes the need for financial preparation.
Noah Collins Howard and Dayshawn Preston are two high school juniors with Division I offers on the table. Both are chasing their dreams on the field, and both are navigating something brand new off of it — their finances.
“When it comes to NIL, some people just want the money, and they just spend it immediately. Well, you’ve got to know how to take care of your money. And again, you need to know how to grow it because you don’t want to just spend it,” said Collins Howard.
What You Need To Know
High school athletes with Division I prospects are learning to manage NIL money before they even reach college
Glory2Glory Sports Agency and Advantage Federal Credit Union have partnered to give young athletes access to financial literacy tools and credit-building resources
Financial experts warn that starting money habits early is key to long-term stability for student athletes entering the NIL era
Preston said the experience has already been eye-opening.
“It’s very important. Especially my first time having my own card and bank account — so that’s super exciting,” Preston said.
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For many young athletes, the money comes before the knowledge. That’s where Glory2Glory Sports Agency in Rochester comes in — helping athletes prepare for life outside of sports.
“College sports is now pro sports. These kids are going from one extreme to the other financially, and it’s important for them to have the tools necessary to navigate that massive shift,” said Antoine Hyman, CEO of Glory2Glory Sports Agency.
Through their Students for Change program, athletes get access to student checking accounts, financial literacy courses and credit-building tools — all through a partnership with Advantage Federal Credit Union.
“It’s never too early to start. We have youth accounts, student checking accounts — they were all designed specifically for students and the youth,” said Diane Miller, VP of marketing and PR at Advantage Federal Credit Union.
The goal goes beyond what’s in their pocket today. It’s about building habits that will protect them for life.
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“If you don’t start young, you’re always catching up. The younger you start them, the better off they’re going to be on that financial path,” added Nihada Donohew, executive vice president of Advantage Federal Credit Union.
For these athletes, having the right support system makes all the difference.
“It’s really great to have a support system around you. Help you get local deals with the local shops,” Preston added.
Collins-Howard said the program has given him a broader perspective beyond just the game.
“It gives me a better understanding of how to take care of myself and prepare myself for the future of giving back to the community,” Collins-Howard said.
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“These high school kids need someone to legitimately advocate their skills, their character and help them pick the right space. Everything has changed now,” Hyman added.
NIL opened the door. Programs like this one make sure these athletes walk through it — with a plan.
