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President Trump’s second term brings a surge of executive orders the returning commander in chief signed into law, leaving banks like JPMorgan Chase (JPM), Bank of America (BAC), and Citigroup (C) scrambling to analyze the impacts.
From the 2025 World Economic Forum (WEF) in Davos, J.P. Morgan Asset and Wealth Management CEO Mary Callahan Erdoes describes the "war room" the bank put together to properly evaluate the Trump 2.0 policies.
Barclays senior equity analyst Jason Goldberg joins Market Domination to highlight potential changes in bank capital regulation, which could ease lending and spark M&A and IPO activity.
“Ever since the Financial Crisis [of 2008] you've seen bank regulation get increasingly more challenging, particularly around capital. I think what the new administration has the ability to do is take a more holistic approach to bank capital regulation,” Goldberg explains.
Despite strong growth, Goldberg cautions about “absent” loan growth and risks in sectors like commercial real estate and lower-end consumer credit.
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Goldberg thinks as the year progresses, time will only tell for gains in bank loans, highlighting that for a lot of smaller banks that is a “big driver of their earnings growth.”
Additionally, Goldberg notes Goldman Sachs (GS) and JPMorgan are poised to benefit from the rebound in investment banking.
Follow along Yahoo Finance's coverage of banking leadership commentary out of the World Economic Forum:
JPMorgan's Trump 'war room' pulls all nighter as US companies digest first moves
Trump 2.0 is 'great news' for small & midsize businesses: BofA CEO
Could the Fed hike rates? Don't 'rule out anything,' BNY CEO says.
Deregulation to boost banks, a 'force for strength in the economy'
Bank of America CEO: The Federal Reserve may have to respond to Trump
To watch more expert insights and analysis on the latest market action, check out more Market Domination here.
This post was written by Josh Lynch