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.
2019-02-11 09:37:00 Monday ET

Corporate America uses Trump tax cuts and offshore cash stockpiles primarily to fund share repurchases for better stock market valuation. Share repurchases
2025-06-21 10:25:00 Saturday ET

Former New York Times science author and Harvard psychologist Daniel Goleman explains why emotional intelligence can serve as a more important critical succ
2019-06-03 11:31:00 Monday ET

The Sino-U.S. trade war may be the Thucydides trap or a clash of Caucasian and non-Caucasian civilizations. The proverbial Thucydides trap refers to the his
2018-10-17 12:33:00 Wednesday ET

The Trump administration blames China for egregious currency misalignment, but this criticism cannot confirm *currency manipulation* on the part of the Chin
2017-11-13 07:42:00 Monday ET

Top 2 wealthiest men Bill Gates and Warren Buffett shared their best business decisions in a 1998 panel discussion with students at the University of Washin
2019-08-14 10:31:00 Wednesday ET

Netflix suffers its first major loss of U.S. subscribers due to the recent price hikes. The company adds only 2.7 million new subscribers in 2019Q2 in stark