Revenues up at KeyCorp and Fifth Third Bancorp -- But Volker Rule Awaits
February 17 2012 - 8:20AM
Marketwired
Regional Banking stocks have been on fire this year - outperforming
the S&P 500 by a large margin. The SPDR S&P Regional
Banking ETF (KRE) -- which is designed to provide portfolios with
low portfolio turnover, tracking, and lower costs -- is up more
than 9 percent in 2012 as the nation's regional banks begin to post
improving credit quality. Five Star Equities examines investing
opportunities in the Regional Banking industry and provides equity
research on KeyCorp (NYSE: KEY) and Fifth Third Bancorp (NASDAQ:
FITB). Access to the full company reports can be found at:
www.fivestarequities.com/KEY
www.fivestarequities.com/FITB
According to a recent report from Reuters, fourth quarter
earnings results highlight how smaller, regional U.S. banks "are
moving closer to conquering the real estate-related credit problems
that have dogged them since the housing crisis began in 2007."
In a separate article, Reuters says regional banks showed signs
of growing loan demand in their quarterly results, "pointing to an
improving U.S. economy." While consumer and industrial lending have
been bright spots for U.S. regional banks, demand for new mortgages
has remained relatively lackluster, Aman Shah of Reuters notes.
Five Star Equities releases regular market updates on the
Regional Banking industry so investors can stay ahead of the crowd
and make the best investment decisions to maximize their returns.
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The controversial Volker Rule that that bans banks' proprietary
trading and limits their investments in hedge funds and private
equity could crimp banking revenues going forward, however. A large
group of U.S. regionals sent a letter this week to the Federal
Reserve and other regulators arguing that the rule, part of the
2010 Dodd-Frank Wall Street Reform and Consumer Protection Act,
would hurt the banks' ability to do business.
Executives at the larger U.S. bank, Morgan Stanley also wrote a
letter posted to the Commodity Futures Trading Commission's website
arguing that reduced liquidity resulting from the Volcker rule
would lead to "price uncertainty, market volatility, higher
transaction costs, and a reduced ability for corporations and other
market participants to raise capital and hedge their risks."
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