RBC's Gerard Cassidy talks results of Federal Reserve stress test

Bank Stress Test Results & Regulatory Outlook - The Federal Reserve's bank stress test results were positive across the board, with all banks passing [1][2] - Pre-tax pre-provision net revenue (PPNR) was more robust due to industry profitability driven by strong capital markets revenues and resilient net interest margin [2] - The decline in capital wasn't as severe despite severe stress scenarios [2] - Investors are positive due to a deregulation outlook, with Michelle Bowman addressing Basel 3 endgame with a more realistic approach [5] - Treasury Secretary Besson suggests loosening regulations to allow banks to contribute more to economic growth [5] Top Bank Picks & Growth Opportunities - Wells Fargo is a top pick due to the lifting of its asset cap, allowing balance sheet growth [6] - Wells Fargo had about 13 cease and desist orders since 2019, with 12 having been lifted, reducing regulatory adherence costs of approximately $12 billion [6][7] - Bank of America is expected to show strong net interest income growth [8] - Opportunities exist for money center and regional banks like Fifth Third, Regions, and M&T to return excess capital [9]