Citi CEO Jane Fraser anticipates that banks will benefit from a potential easing of banking regulations under President-elect Donald Trump. She expects that the proposed Basel III Endgame capital requirements will be relaxed, with any increases likely to be lower than the previously planned 9%.
Wall Street CEOs gathered in Riyadh for the Future Investment Initiative, expressing optimism about the US economy while voicing concerns over sluggish growth in Europe. Notable figures such as Citigroup's Jane Fraser and BlackRock's Larry Fink highlighted the resilience of the US market amidst global uncertainties.
Citigroup's stock fell 5% following its third-quarter earnings announcement, despite beating expectations and showing revenue growth across all divisions. CEO Jane Fraser faced scrutiny during the earnings call regarding potential new asset-cap restraints, which she later clarified do not exist. This confusion, coupled with regulatory concerns raised by Senator Elizabeth Warren, has heightened investor anxiety about the bank's compliance and transformation efforts.
Big banks experienced a significant rebound in the third quarter, driven by increased corporate confidence in issuing debt and pursuing mergers. Goldman Sachs reported a 20% rise in investment banking fees, while Bank of America achieved record trading revenue. Despite overall profit declines for some banks, optimism remains, bolstered by the Federal Reserve's interest rate cuts, though geopolitical uncertainties and the upcoming U.S. presidential election pose potential risks.
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