After weathering the global financial crisis and an era of heavy regulation, the US banking sector has gotten what looks to be a clean bill of health. We think this opens a lot of possibilities for equity investors.
When the US Federal Reserve released the results of its Comprehensive Capital Analysis and Review (CCAR) in late June, it marked a dramatic moment for beleaguered US banks. In one fell swoop, the annual stress tests confirmed that banks aren’t mired in a regulatory quagmire anymore. Instead, they’re strong American companies that seem fully recovered from the global financial crisis of 2008.
