Banks Hit by Worst Week Since May as Regulatory ‘Waves’ Loom
- Two bank stock gauges each fell at least 5% this week
- Results from Fed stress test are set to be released Wednesday
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Bank stocks’ recovery from their swoon earlier this year took a step back this week, with one prominent analyst cautioning that US lenders face a series of regulatory headwinds over the next few months.
After rallying for the better part of a month since hitting their lowest level in more than two years, banking shares once again find themselves under pressure, with the Federal Reserve eyeing sharply higher capital requirements for the biggest lenders and results from next week’s annual Fed stress test due out Wednesday.