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Regional banks outperform after Senate deal

Published 11/14/2017, 11:03 AM
Updated 11/14/2017, 11:03 AM
© Reuters.  Regional banks outperform after Senate deal
  • The major averages are in the red as are the TBTF banks, but regional lenders are pushing higher after the Senate yesterday reached a bipartisan deal to ease regulation.
  • At the heart of the agreement: The asset limit at which a bank will be subject to the annual stress test and CCAR was raised to $250B from $50B. Among those to be exempted: Zions Bancorp (ZION +2.7%), M&T (MTB +0.8%), SunTrust (STI +0.6%), Huntington (HBAN +1.6%), Fifth Third (FITB +0.9%), Citizens Financial (CFG +2%).
  • New York Community Bank (NYCB +1.8%) has kind of been a poster child for the contortions the current rule has inspired - right up close to that $50B threshold, management struggled with whether to stay beneath it, grow over it, or make an acquisition to shoot way above it.
  • KRE +0.65%, KBE +0.6%, XLF -0.2%
  • Previously: Senate reaches deal to ease bank oversight (Nov. 13)
  • Now read: It's Official - Demand Is Slowing


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