A few months back, coming off the results of the Presidential election, we opined on the seemingly rocket-fueled rally in bank stocks. At the time, we posited the following as probable/potential catalysts underpinning the significant positive move in the sector:
Meaningful tax reform - might rates drop from approximately 35% to 25% or lower?
Pro-growth sentiment in D.C. - will it help fuel stronger economic growth as measured by GDP?
Favorable interest rate environment - will expectations of steadily rising rates help shape a steeper yield curve, and result in long-sought margin expansion?
Regulatory relief - could a roll-back or significant revisions to Dodd-Frank help ease the time and costs associated with this post-crisis regulatory burden, particularly for our nation’s community banks?Read Full Post
This blog concludes the Trends in Technology series on fintech, although I do plan on returning to the subject whenever I encounter a fintech subject that I think should be expanded upon. Each day, I invest approximately one hour reviewing email and other resources on fintech. It is possible that in the coming weeks something on fintech will catch my eye and become the subject of a future blog. We will see.Read Full Post