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Big U.S. Banks Could See Profit Jump 20% With Deregulation

  • JPMorgan, Morgan Stanley would be biggest beneficiaries
  • Lower capital requirements will mean more cash to shareholders
Bloomberg business news

U.S. Banks Could See Profit Jump 20% Under Trump

Updated on

The deregulation winds blowing through Washington could add $27 billion of gross profit at the six largest U.S. banks, lifting their annual pretax income by about 20 percent. 

JPMorgan Chase & Co. and Morgan Stanley would benefit most from changes to post-crisis banking rules proposed by Donald Trump’s administration, with pretax profit jumping 22 percent, according to estimates by Bloomberg based on discussions with analysts and the banks’ own disclosures. Goldman Sachs Group Inc. would have the smallest percentage increase, about 16 percent.