Banks Drop After U.S. Regulatory Relief Is Dismissed as `Modest'
- Fed moves are ‘clearly positive for banks,’ Compass Point says
- But change was modest, likely to have muted impact on shares
Fresh regulatory moves late Wednesday -- including instructions from the Federal Reserve about its annual stress tests and new Financial Stability Oversight Council proposals -- offered some relief for banks, but probably not enough to boost share prices, analysts said.
Bank shares dropped in early Thursday trading, with the KBW Bank Index down about 1 percent, hurt in part by growth worries. U.S. 10-year Treasury yields fell about 4 basis points to 2.652 percent, the lowest since Feb. 27, tracking steeper declines in euro-zone 10-year yields, which were sparked by the ECB’s growth forecast cut and announcement of monetary stimulus measures. State Street Corp., SVB Financial Group, Citigroup Inc., Comerica Inc. and Bank of America Corp. were among top decliners.