The expression, “bigger is better,” could be true- especially when dealing with the largest banks. As the smaller regional banks have struggled under the weight of souring real estate loans, dwindling deposits, and a mixed economic environment, the biggest banks have thrived. Driven by strong fundamentals as well as a rise in M&A and prop trading, the largest financial institutions are surging.
Perhaps what’s best is that the biggest banks could have more gains in store.
Thanks to potential regulatory changes courtesy of the Trump Administration, the biggest banks could finally unleash much of their restricted capital, increase dividends, and enter markets they had once excluded. For investors, when examining the financial sector, the big banks could be a significant buy.
