US Banks Surge $600 Billion on Trump Deregulation, Outpacing European Rivals
JPMorgan Chase, Citigroup, Bank of America, and other Wall Street giants have added $600 billion in market value since late 2024, fueled by regulatory rollbacks under the TRUMP administration. The six largest US banks now command a combined $2.37 trillion valuation—a 34% surge in under 12 months—while Europe's top lenders remain stagnant at $1 trillion collectively.
Post-2008 capital requirements and stress tests once constrained profitability, but revised leverage rules and relaxed lending standards have reignited investor enthusiasm. "The regulatory shift has been transformative for stock prices," says RBC analyst Gerard Cassidy, noting how crisis-era capital buffers had previously depressed returns.
This rally marks the second consecutive year US financial stocks have outperformed the broader S&P 500, demonstrating how policy changes can reshape market hierarchies. The divergence with European banks highlights the compounding effect of asymmetrical financial regulations across major economies.
