Rising bond yields are typically indicators of stronger economic growth and higher profits for banks. That might not be the case this time, as a 30-year bull market in U.S. government debt shows signs of coming to an end.
The six largest U.S. banks may return almost $41 billion to investors in the next 12 months, the most since 2007, as regulators conclude firms have amassed enough capital to withstand another economic shock.
Capital One Financial Corp. is among the cheapest U.S. bank stocks, even as Federal Reserve data show the company is better-equipped than JPMorgan Chase & Co. and Wells Fargo & Co. to withstand a severe economic slump.
Bank of America Corp. and Citigroup Inc. are among lenders that may find it more difficult to boost profits and capital after the Federal Reserve pledged to keep its benchmark interest rate low until at least late 2014.
Goldman Sachs Group Inc. is poised to win the top spot among advisers on both global takeovers and equity offerings for the first time in five years, a sign the bank hasn’t lost the trust of corporate executives.
Citigroup Inc., the third-biggest U.S. bank, asked the Federal Reserve for permission to buy back $1.2 billion of shares without seeking a dividend increase a year after its previous request was rejected.