Changes in Fed Policy Pressure Regional Banks

Richard Suttmeier - finance.yahoo.com Posted 5 years ago

Lower interest rates put the squeeze on bank earnings and that puts pressure on super regional banks such as BB&T Corp. During Fed Chair Jerome Powell's press conference, one notion that caught my attention is that there appears to be renewed scrutiny for these larger banks. A dovish Fed and continued low interest rates put pressure on net interest margins, which is the money banks make after their cost of money and interest earned on investments.

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