So one of the things that was very hard to figure during the Trump Rally, especially in bank stocks, was to what degree banks may actually benefit from the deregulation that Trump’s administration was proposing. Well, that may now be starting to change as Bloomberg has just put out a comprehensive set of new estimates for how much each bank would benefit from various types of deregulation. JP Morgan and Morgan Stanley would be the biggest beneficiaries, seeing their pretax profits jump a whopping 22%. Goldman Sachs would see the smallest percentage increase, up 16%. The calculations are based on conversations with banks as well as their own disclosures.
FINSUM: These are pretty big gains. Frankly, they are larger than we would have anticipated. Now to the pesky part about actually enacting deregulation.