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6 Regional Bank Stocks to Buy Before Trump Names New SEC Leadership
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The regional banking sector has spent much of the last two years making headlines for all the wrong reasons. Bank failures like Silicon Valley, Signature Bank, and First Republic Bank rocked the sector, and the SPDR Regional Banking ETF (NYSE: KRE) dropped more than 40% at the end of 2023.
Investors remained on edge to start 2024 following another pair of failures, but the sector has rebounded following the Federal Reserve’s rate-cut strategy and the 2024 U.S. presidential election results.
The incoming Trump administration is expected to replace several top regulators, such as Linda Khan (at the FTC), Rohit Chopra (CFPB), and Gary Gensler (SEC), which could create an atmosphere for more mergers and acquisitions through less stringent regulation.
Regional banks stand to be some of the biggest beneficiaries of this attitude change, and KRE has already jumped 18% in the last month.
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