President Donald Trump is considering breaking up the nation’s biggest banks, a vow he had made during the presidential campaign then seemed to put on the back burner.
Trump said he is “looking at that right now,” in an interview with Bloomberg News.
Major averages slipped as the news broke, then rebounded, while government bond yields hit their highs of the day.
However, bank stocks rallied, with investor taking a win-win view: Breaking up the big banks would open business opportunities for smaller institutions, while the large Wall Street firms would be worth more as separate entities than they are combined.
Bank of America shares jumped 1.3 percent, just off the session high as the market digested the news, while JPMorgan Chase was up 0.6 percent.
The SPDR S&P Bank exchange-traded fund was up about 0.8 percent in the aftermath of Trump’s remarks, near its highs for the day.
Read more at CNBC.