The regulations that have covered the banking sector since the 2008 financial crisis. are ripe for editing, said Randal Quarles, the Fed's new vice president and one of the world's largest corporate defenders. President Trump's campaign to abolish some of the Wall Street banks' regulations is on track, and according to Quarles, the Bill has made significant changes.
Quarles has announced that the biggest difference the Fed will do is how it interacts with individual banks.
The greatest desire of the Wall Street banks Trump is expected to accomplish is the softening of the so-called Volker's rule introduced by Dodge-Frank. This rule removes the possibility for banks to carry out high-risk transactions with their own funds.
The US administration is also reporting a mitigation of the capital requirements accumulated to protect the bank during a financial crisis.
It seems that the Trump Rally is just on vacation, while the capital rotation goes to the benefit of the banking sector, which we expect to be one of the most preferred in 2018.
We are waiting for the changes in the banking sector, and we will take advantage of the opportunity to add to the long positions in any bank correction.
Source: Bloomberg Business Week
Young trader Peter Milanov
Bloomberg: How Trump can give Wall Street what he wants
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