Trump Has Bank Stocks Singing ‘Hail to the Chief’
By TELIS DEMOS and EMILY GLAZER
Investors in bank stocks greeted Donald Trump’s presidential victory with cheers, reflecting hopes for stronger growth and a lighter regulatory burden…. But analysts warned the stocks still face threats from increased political risk or a rise in U.S. protectionism. “Dodd-Frank is done for,” Karen Petrou of Federal Financial Analytics wrote in a research note Wednesday. While she said the law would only change over time, its structural assumptions about regulation are “smashed.” For big banks, though, this could prove a threat. Populist forces on both sides of the political aisle could squeeze them, Ms. Petrou added.
http://www.wsj.com/articles/bank-investors-brace-for-volatility-following-trump-surge-1478672433
