Three of the four "too big to fail" money-center banks -- Bank of America (BAC) - Get Report , JP Morgan (JPM) - Get Report and Wells Fargo (WFC) - Get Report -- are in correction territory between 12.8% and 14.8% below their post-election highs set as March began. Citigroup (C) - Get Report has been the best performing bigger bank, only 3.4% below its post-election high set on May 26. Even so, Bank of America and Citigroup are in bull market territory vs. their post-election lows set on Nov. 8.
Four of the five super regional banks, BB&T Corp (BBT) - Get Report , PNC Financial (PNC) - Get Report , SunTrust (STI) - Get Report and U.S. Bancorp (USB) - Get Report , are in correction territory between 10% and 16.5% below their post-election highs set on March 1. M&T Bank (MTB) - Get Report is 9.9% below its post-election high set on March 1. M&T Bank and PNC Financial are also in bull-market territory vs. their post-election lows set on Nov. 8.
According to the Federal Deposit Insurance Corporation, loan growth slowed during the fourth quarter of 2016 and the first quarter of 2017. Most analysts on Wall Street expected the pending softening of Dodd-Frank lending standards to allow banks to increase lending, but that has not happened. This anticipation had the big banks as the strongest segment in the stock market until they stalled as March began.
In early-March, I covered the FDIC data in the Quarterly Banking Profile for the fourth quarter of 2016 and my theme then was that these stocks had rallied too far, too fast, and that proved to be the case. The FDIC Quarterly Banking Profile for the first quarter of 2017 reflects continued concerns, as shown in my story covering this data, published on June 1.
Over on Real Money, Jim Cramer gives advice to investors looking at how to play the Trump Trade. Get his insights or analysis with a free trial subscription to Real Money.
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.