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.
2024-03-26 09:30:00 Tuesday ET
Stock Synopsis: ESG value and momentum stock market portfolio strategies Since 2013, we have been delving into the broad topics of ESG (Environmental, So
2017-06-15 07:32:00 Thursday ET
President Donald Trump has discussed with the CEOs of large multinational corporations such as Apple, Microsoft, Google, and Amazon. This discussion include
2022-10-05 08:24:00 Wednesday ET
Precautionary-motive and agency reasons for corporate cash management Bates, Kahle, and Stulz (JF 2009) empirically find that public firms have doubled t
2018-09-05 08:34:00 Wednesday ET
Citron Research short-sellers initiate a class-action lawsuit against Tesla and its executive chairman Elon Musk because he might have deliberately orchestr
2017-12-13 06:39:00 Wednesday ET
The Federal Communications Commission (FCC) has decided its majority vote to dismantle rules and regulations of most Internet service providers (ISPs) that
2019-02-17 14:40:00 Sunday ET
U.S. economic inequality increases to pre-Great-Depression levels. U.C. Berkeley economics professor Gabriel Zucman empirically finds that the top 0.1% rich