There's quite a bit at stake with Vocker, and it's possible that the final rules will be the catalyst for the banks giving Washington just what it wants, which is a series of spinoffs of investment banking operations from traditional commercial banking.  For more on what the ban on proprietary trading might mean for the big banks and which companies might see their market shares improve, please see Volcker Rule Puts Non-Bank Financials Into Play.


Shares of Discover have returned 40% this year.  The shares trade for 10.5 times the consensus 2014 EPS estimate of $5.08, among analysts polled by Thomson Reuters, and for 9.9 times the consensus 2015 EPS estimate of $5.41.  Those are pretty low forward price-to-earnings ratios in this market, considering that Discover's return on average tangible common equity for the first three quarters of 2013 was 26.04%, according to Thomson Reuters Bank Insight.

For more on credit card stocks, please see Capital One, Discover Are Bargains as Industry Resumes Growth.

DFS ChartDFS data by YCharts


-- Written by Philip van Doorn in Jupiter, Fla.

>Contact by Email.

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.

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