Banks appear poised to manage their growth aggressively towards the end of the decade, aiming to maximize their growth while maintaining a low-to-mid-teens return on tangible common equity. The prediction is tinged with some skepticism regarding expectations of a significantly 'lighter touch' regarding regulatory and capital requirements in the future, reflecting a view that banks will continue to navigate these challenges. Opportunities still exist within the sector, which is seen as 'reasonably valued' with considerable potential remaining.

Citi is positioned as a dominant pick under almost all scenarios excluding a recession. It is projected that expenses will surpass expectations, pivotal inflections in returns will boost the stock, and the book value is set to grow even during a recession. Furthermore, the recent management changes are considered the most significant in five decades. Over a three-year span, significant enhancements in earnings per share, efficiency, and returns are anticipated, which could potentially double the stock value.

Equity markets experienced a roughly 2% decline in December, attributed mainly to anticipations adjusting around the timing of rate cuts. Additionally, investment banking activity levels remained subdued in December, continuing a trend from November despite stronger performance in September and October. Expectations are set for a more active beginning to 2025, with improvement in investment banking viewed as likely; it's a matter of timing rather than possibility.