2017-05-31 06:36:00 Wed ET
stock market competition macrofinance stock return s&p 500 financial crisis financial deregulation bank oligarchy systemic risk asset market stabilization asset price fluctuations regulation capital financial stability dodd-frank
The Federal Reserve rubber-stamps the positive conclusion that all of the 34 major banks pass their annual CCAR macro stress tests for the first time since the global financial crisis of 2008-2009. These banks are Citigroup, JPMorgan Chase, Bank of America, Wells Fargo, and Goldman Sachs etc, which respond to this great news by increasing their hefty dividends and share repurchases (upward 65% from the previous fiscal year). Fed approval motivates all of the largest banks to achieve healthy equity capital levels and most major banks to substantially improve their ongoing capital adequacy plans.
The only exception is Capital One, which needs to resubmit its capital adequacy plan later. In response to this approval, many of these banks have announced to distribute more than 85% of current net income to their shareholders in the form of cash dividends and share repurchases in the next few years. Whether the Trump administration overhauls Dodd-Frank macroprudential stress tests with leaner financial regulation remains a hidden catalyst for the current stock market rally for banks, insurance companies, and other financial institutions. Fiscal stimulus and lower corporate income taxation boost bank stock prices.
Overall, bank stocks are likely to fare better under the Trump administration that intends to make financial deregulation more efficient for long-term sustainable operating profitability, market valuation, and asset growth. Fintech innovation can serve as a core moat for the U.S. financial sector's competitive advantage in the next decade.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2018-05-08 13:39:00 Tuesday ET

The Trump administration weighs the pros and cons of a potential mega merger between AT&T and Time Warner. Recent stock prices show favorable trends for
2018-11-13 12:30:00 Tuesday ET

President Trump promises a great trade deal with China as Americans mull over mid-term elections. President Trump wants to reach a trade accord with Chinese
2017-10-15 07:38:00 Sunday ET

Ivanka Trump and Treasury Secretary Steven Mnuchin both press the case for GOP tax legislation as economic relief for the middle-class without substantial t
2019-01-15 13:35:00 Tuesday ET

Americans continue to keep their financial New Year resolutions. First, Americans should save more money. Everyone needs a budget to ensure that key paychec
2019-09-07 17:37:00 Saturday ET

Federal Reserve Chair Jerome Powell announces the monetary policy decision to lower the federal funds rate by a quarter point to 2%-2.25%. This interest rat
2017-10-03 18:39:00 Tuesday ET

President Trump has nominated Jerome Powell to run the Federal Reserve once Fed Chair Janet Yellen's current term expires in February 2018. Trump's