Hua Er Jie Jian Wen·2025-12-25 03:51Group 1 - The financial deregulation pushed by the Trump administration has led to a recovery in investment banking and an increase of $600 billion in market value for the six largest U.S. banks this year [1] - As of Wednesday's close, the total market capitalization of JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs, and Morgan Stanley exceeded $2.38 trillion, a significant rise from $1.77 trillion at the end of last year, and they are expected to outperform the S&P 500 for the second consecutive year [1][2] - In contrast, the total market capitalization of the six largest European banks is only $1 trillion, highlighting the growing divergence between U.S. and European banking sectors since the 2008 financial crisis [2] Group 2 - Regulatory policy shifts have been a key factor driving stock price increases, with U.S. regulators proposing to allow the largest banks to increase leverage and reforming capital requirements [2][4] - Strong recovery in investment banking has further boosted market confidence, with Citigroup's stock rising over 70% this year, leading the six major banks, and Goldman Sachs' stock climbing nearly 60% to reach an all-time high [2][7] - Analysts predict that bank stock and fixed income trading revenues will exceed historical peaks this year, with projected trading revenues of $92 billion for equities and $163 billion for fixed income [8] Group 3 - The deregulation measures introduced by the Trump administration have directly enhanced bank stock performance, with analysts emphasizing the importance of regulatory changes on stock prices [4] - Banks are expected to have excess capital available for business expansion, stock buybacks, and dividends, as they have been holding more capital than necessary under previous proposals [5] - Despite concerns from some lawmakers regarding the risks of deregulation, investors have shown minimal apprehension towards the increased risk-taking by banks [6]