Banks survived another week—and looks like the biggest winner

Photo of author

The US banking system has avoided a full-blown crisis over the past two weeks after fearing the worst since 2008-09, thanks to regulators effectively returning deposits and providing loans to the nation’s banks.

Questions remain about health of some regional even after San Francisco-based rescue by 11 big banks First Republic Bank (ticker: FRC) on Thursday with deposits encouraged by the government. But America’s largest banks, including JPMorgan Chase (JPM) and Wells Fargo (WFC), look safe and sound like good investment bets, even though tighter regulation, higher capital levels and greater liquidity requirements are likely to down industry returns.

See also  T-Mobile stock downgraded as wireless industry faces 'Great Recession' of growth