Big Banks Look to Benefit as Daniel Tarullo Announces Retirement: Today’s Research Reports on Bank of America and Citigroup

NEW YORK, NY / ACCESSWIRE / February 13, 2017 /
Financial stocks spiked Friday after Federal Reserve Governor Daniel Tarullo announced his retirement, well short of the end of his term in 2022. The Financial Select Sector SPDR Fund jumped by as much as 0.63 percent following the announced before settling to close at 23.78, up 0.30 percent. Governor Daniel Tarullo was the Federal Reserve’s top regulator of Wall Street Banks who led the charge following the 2008 financial crisis.

“Tarullo is a bank regulator and the perception in the marketplace, rightly or wrongly, is that he is for tighter regulatory oversight and lower margins in the banking business,” said Neil Dutta, head of U.S. economics at Renaissance Macro Research, “Someone with more lax attitudes on regulation is likely to come out of this. Buy banks — the dog is running without its leash on.” Mr. Dutta stated to “Buy banks” in a note to client sent out just four minutes after Tarullo’s retirement announcement, according to Bloomberg.

Let’s Take a
Closer Look at Today’s Trending Tickers

Bank of America’s shares declined 0.17 percent to close at $23.08 a share on Friday. The stock traded between $22.96 and $23.24 on volume 90.55 million shares traded. The company reported earnings per share of $0.40 on revenue of $19.99 billion, mainly due to improvement in credit quality and continued cost cutting. Analyst’s expectations had called for adjusted earnings per share of $0.38 on revenue of $20.76 billion, according to data from Bloomberg. Bank of America announced that it would increase its stock-buyback program to $4.3 billion from $2.5 billion for the first half of 2017. Shares of Bank of America have gained approximately 4.43 percent year-to-date.

Access Today’s Bank of America Research
Report Click Here

Citigroup shares gained 0.65 percent to close at $57.63 a share on Friday. The stock traded between $57.13 and $57.95 on volume of 14.42 million shares traded. The company reported earnings of $3.57 billion, or $1.14 per share, for the fourth quarter of 2016, compared to $3.34 billion, or $1.02 per share, a year ago. Revenues for the quarter totaled $17.012 billion, a decrease of 8.0 percent year-over-year. The Company has explained that drop in revenue was mainly due to absence of net gains on asset sales in Citi Holdings. Consensus analyst estimates had called for earnings of $1.12 a share on revenue of $17.3 billion, according to analysts polled by Reuters. Shares of Citigroup have fallen approximately 3.03 percent year-to-date.

Access Today’s Citigroup Research Report
Click Here

Today’s Features Includes:

Bank of America Corp. (NYSE: BAC)

Citigroup Inc. (NYSE: C)

Research Driven
Investing

We are committed to providing relevant and actionable information for the self-directed investor. Our research is reputed for being a leader in trusted, in-depth analysis vital for informed strategic trading decisions. The nimble investor can leverage our analysis and collective expertise to execute a disciplined approach to stock selection.

RDInvesting has not been compensated; directly or indirectly; for producing or publishing this document.

Disclaimer: This article is written by an independent contributor of RDInvesting.com and reviewed by Hemal K. Gandhi, a CFA® charter holder. RDInvesting.com is neither a registered broker dealer nor a registered investment advisor. For more information please read our full disclaimer at www.rdinvesting.com/disclaimer.

CONTACT

For any questions, inquiries, or comments reach out to us directly at:

Address:

Research Driven Investing, Unit #901 511 Avenue of the Americas, New York, NY, 10011

Email:

contact@rdinvesting.com

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: RDInvesting.com

ReleaseID: 454949

Go Top