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Major U.S. banks poised to benefit from a more relaxed regulatory climate.
This week, hedge fund manager Steve Eisman, famous for his bets against mortgage-backed securities in Michael Lewis’s book The Big Short, forecast that a “gilded era” for banks was about to get underway. In addition to the tailwinds created by rising interest rates, Mr. Eisman also predicts that U.S. president-elect Donald Trump will begin rolling back many financial regulations that have slowed the growth of U.S. banks in recent years. In spite of this sector moving higher by approximately 18 per cent since the election, U.S. banks have underperformed the broader market for the past eight years. Based on this thinking, this sector could still have considerable room to run.
Select U.S. banks
|Rank||Company||Symbol||Market Cap. (US $Bil.)||P/E (This Year's Estimate)||Operating Margin||Div. Yield|
|1||Wells Fargo & Co.||WFC-N||$281.8||13.9||34.7%||2.7%|
|4||PNC Financial Services Group Inc.||PNC-N||$57.4||16.6||33.5%||1.8%|
|5||Bank of New York Mellon Corp.||BK-N||$50.4||15.7||28.6%||1.6%|
|6||Regions Financial Corp.||RF-N||$17.9||17.4||28.3%||1.8%|
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- Wells Fargo & Co$52.45-0.04(-0.08%)
- BB&T Corp$43.17-0.17(-0.39%)
- U.S. Bancorp$50.77-0.53(-1.03%)
- PNC Financial Services Group Inc$119.55-1.21(-1.00%)
- Bank of New York Mellon Corp$49.17-0.38(-0.77%)
- Pinnacle Foods Inc$61.92+0.40(+0.65%)
- Updated June 23 4:00 PM EDT. Delayed by at least 15 minutes.