US banks fall day after rally sparked by Trump win
Updates
** Shares of U.S. banks fall on Thursday, a day after a rally sparked by Donald Trump's reelection as president
** JPMorgan Chase JPM.N, Wells Fargo WFC.N and Bank of America BAC.N down 3.4%, 2.6% and 1.2%, respectively
** Citigroup C.N, Goldman Sachs GS.N and Morgan Stanley MS.N each down less than 1%
** Larger banks will see a lesser impact from the deregulation expected under a Trump administration than regional lenders, according to a note from Morningstar DBRS
** Still, a Republican administration might redo the Basel III endgame capital proposal, which regulators say is needed to safeguard lenders from unforeseen risks
** Banks have hotly contested the proposal, saying it would reduce competition, and have convinced the U.S. Federal Reserve to water it down
** The M&A landscape for the industry could also turn more conducive under Trump, paving the way for more consolidation - Morningstar
** YTD, the S&P 500 Banks index .SPXBK has gained ~40%, while the KBW Regional Banking index .KRX is up ~22%, compared with the benchmark S&P 500 index's .SPX ~24% jump
** Separately, the Fed is expected to lower interest rates later on Thursday
Reporting by Niket Nishant in Bengaluru
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