Bank Shares Rise Across the Industry on Fed News of Easier Stress Test
The Federal Reserve stated that it would “reduce the volatility of stress test results..."
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- Written by Banking Exchange staff
The Federal Reserve stated that it would “reduce the volatility of stress test results and begin to improve model transparency”, which helped banks rise in market trading on Thursday.
The nation’s largest financial institutions’ stocks traded higher on the news with Goldman Sachs, Citigroup, and Morgan Stanley averaging more than 2% gains.
Regional banks also received a bump, but not as strong in comparison to the largest institutions. Wall Street was already anticipating a better regulatory environment under the Trump administration.
The “stress test” news strengthened that view.
Critics claim that the Federal Reserve has too short of a memory, forgetting the crisis of 2008, but those critics are not on Wall Street.
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