Last night it seemed like a surprise when the WSJ reported that Obama was about to wage war on Wall Street with new limitations on bank size, leverage, and prop trading.
But it wasn’t a surprise to everyone!
Regional banks made a monster move yesterday — defying the market selloff — and though it was hard to explain at the time, in retrospect it makes absolutely perfect sense.
A crackdown on big, conglomerate financial institutions benefits smaller, plain-vanilla banks, and boring trust companies.
Here, take a look at the state of financials as of 2:00 yesterday. You’ll notice that all the winners are winners of today’s news:
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See Also:
- Tim Geithner: Now Officially A Lame Duck Until November 3, 2010
- Is The New Battle Against Wall Street Why Elizabeth Warren Met With David Axelrod Today?
- Obama’s Assault On Wall Street Begins: New Limits On Size, Leverage, And Prop Trading Coming