Bank stocks take flight as Washington signals regulatory rollbacks
by Andrea Riquier
Bank stocks powered higher Wednesday as investors digested more business-friendly rhetoric from Washington. On Tuesday, Jerome Powell, the nominee to replace Janet Yellen as chair of the Federal Reserve, had what Ian Katz of Capital Alpha Partners called a “positive-for-banks” Capitol Hill hearing. …As bank analyst Karen Petrou wrote in a recent client note, “a hard look at reconfiguring bank holding companies and allowing banks to be banks has significant strategic upside not just for traditional institutions such as Zions, but also more broadly across the full swath of even the largest U.S. banks.” A reconsideration of this type of business organization, as Noreika advocated in his speech, would enable a “powerful business model with considerable public policy benefit,” Petrou wrote.