S&P Capital IQ Favors Regional Banks Over Large Institutions for 2017

Consumer lenders like American Express and Discover could benefit under looser financial regulations under the Trump administration, says S&P Capital IQ.

Author:: Rhonda Schaffler
Publish date:: Dec 21, 2016 7:15 AM EST

Relaxation of financial regulations under a Trump administration would benefit regional banks and consumer lenders, according to S&P Capital IQ.

Capital One (COF) - Get Report , American Express (AXP) - Get Report and Discover (DFS) - Get Report are potential winners in 2017, according to Erik Oja, an analyst with CFRA. Additionally, Oja says a softening of the Volcker Rule could benefit banks like First Horizon National (FHN) - Get Report in Tennessee, which is major bond trader. He thinks regional banks like Comerica (CMA) - Get Report will be winners next year, thanks to an improving economy.

Oja believes regulatory changes may make the large financial institutions like Bank of America (BAC) - Get Report , JPMorgan Chase (JPM) - Get Report , Citigroup (C) - Get Report and Wells Fargo (WFC) - Get Report rethink their business models and sell off some assets.