Chicago's Financial Sector Rebounds After Struggles

FIRE industries lead the city's economic resurgence, but face new challenges ahead

Apr. 12, 2026 at 3:35pm

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An extreme close-up of gears, levers, and other heavy industrial components that make up the inner workings of a modern banking system, conveying the tangible, mechanical nature of Chicago's financial backbone.Chicago's financial institutions leverage advanced technology and infrastructure to maintain their status as a national hub for banking, trading, and risk management.Chicago Today

Chicago's finance, insurance, and real estate (FIRE) industries have become a key economic driver for the city, growing rapidly over the past 25 years to account for nearly one in ten local jobs. However, the sector faces headwinds as major banks struggle to recover from the 1980s, and the city's signature futures exchanges confront threats of tighter regulation and technological disruption.

Why it matters

The performance of Chicago's FIRE sector will be crucial in determining the region's overall economic growth and prosperity in the coming years, as the city works to reinvent itself after the decline of its manufacturing base. The concentration of financial services in Chicago makes it a national hub, but also exposes the area to risks facing the industry.

The details

Chicago's FIRE industries have seen dramatic growth, with employment in the sector increasing by over 190,000 jobs since 1969 and now accounting for almost 10% of the city's workforce. This outpaces the national growth rate for FIRE, making the sector's performance critical for the region. Within FIRE, the city has particular strengths in securities and commodities trading, credit institutions, and insurance. However, some of Chicago's key financial pillars, such as its major banks and futures exchanges, face significant challenges ahead.

  • In 1969, the FIRE sector accounted for only 7% of Chicago-area employment.
  • By 1992, the FIRE sector had created over 190,000 new jobs and accounted for almost one in ten Chicago-area jobs.
  • In the late 1980s, a study found the Chicago exchanges were directly responsible for 33,000 jobs and indirectly for over 110,000 jobs.

The players

Continental Bank

A major Chicago bank that struggled in the 1980s but has since returned to profitability, including through its Latin American operations. Continental Bank was purchased by BankAmerica Corp. in 1994 and renamed Bank of America Illinois.

First Chicago Corp.

Chicago's largest bank, which recently merged with Detroit-based NBD Bancorp to form First Chicago NBD Corp., the seventh-largest banking concern in the nation. First Chicago's success was driven by its rapidly expanding credit-card operations.

Chicago Board of Trade (CBOT)

One of the world's two largest futures exchanges, along with the Chicago Mercantile Exchange (CME). Over one-third of the world's options and futures are traded on Chicago's exchanges.

Chicago Mercantile Exchange (CME)

One of the world's two largest futures exchanges, along with the Chicago Board of Trade (CBOT). Over one-third of the world's options and futures are traded on Chicago's exchanges.

Chicago Stock Exchange

Recently applied for SEC approval to create a new electronic exchange for the growing off-exchange trading market, as Chicago's exchanges face competition from over-the-counter trading.

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What’s next

The debate over regulating futures and derivatives trading may lead to changes in the regulatory framework for Chicago's exchanges, which could inhibit their continued expansion of financial products.

The takeaway

Chicago's FIRE industries have been a critical part of the city's economic reinvention, but the sector faces significant challenges ahead as major banks struggle, futures exchanges confront new threats, and the entire industry grapples with technological disruption and regulatory uncertainty.