🏦Trump's victory affects the banking sector and its future! US bank stocks are rising, bringing hope that the Trump administration will bring a fresher wind to Wall Street.

💸Shares of financial institutions like JPMorgan Chase $JPM, Bank of America $BACrose after the election results were announced and Citigroup $C by as much as 10 % and banking giants like Morgan Stanley $MS, Goldman Sachs $GS and Wells Fargo $WFC by as much as 11-14 %. It's a clear signal - the banks believe Trump will bring policies that will reduce heavy-handed regulation and bring more leeway to the banking sector.

Analysts expect the next few years to be more favorable for banks due to the reduction in strict rules that were put in place after the crisis in 2008. Latest 15 years have been a struggle for the Wall Street a period of tightened regulation, but now there's a shift. Big banks, including Capital One expect the relaxed policy to make mergers and acquisitions easier - Capital One is already in talks to merge with Discover Financial Services. 🚀 The move would strengthen its market position if regulators and shareholders give the green light.

Some economic analysts expect the new administration's first moves to focus on leadership changes at the federal agencies that oversee the banking sector - including the Justice Department and Federal Trade Commission. Banks hope the new leadership will adopt a more accommodating stance on capital requirements, which currently require higher reserves in case of a crisis. Banks have long fought against these rules and advocated for relaxation. ✂️

But beware! Looser regulation may trigger another economic growth cycle, which has led to financial crises in the past. Analysts also warn that the combination of rising government debt and looser rules could lead to long-term problems, which could hit not only banks but the entire economy. According to the Committee for a Responsible Federal BudgetTrump's economic plans could increase the federal deficit by $7.75 trillion over the next decade.

JPMorgan ChaseCEO Jamie Dimon has already let it be known that he is prepared to "fight" against some of the regulatory actions that were put in place during the Biden era. So the banking sector is watching the situation very closely - the possibility of greater freedom also brings risk.

It will be interesting to see what it actually brings Trump's economic agenda. Whether looser regulation will be a real win for investors or whether it will rock the markets, however, we will have to wait and see. Either way, no one wants a repeat of the scenario of 2008.

What is your view on the banking sector and how do you think Trump will change it?