Banks stocks did well Friday as investors anticipated that the Federal Reserve will ease interest rates. By contrast, the Dow Jones industrial average lost 1.6 points to close at 3,282.41.
The biggest gainers were in New York. J.P. Morgan & Co. led the surge. Shares rose $1.875 to $56, after losing ground on Thursday. Bankers Trust New York Corp. gained $1.75 to close at $57.875.
Mellon Bank Corp. in Pittsburgh rose $1.75 to close at $41. BankAmerica Corp. gained $1.25 to close at $45.
The top five banks and thrifts have combined total assets of nearly $13 trillion.
Many legal experts think the Supreme Court will rule in favor of the Consumer Financial Protection Bureau in a case challenging its funding. Such a ruling would unleash a flurry of litigation that has been on hold pending the outcome of the constitutional challenge.
Lawmakers including one of the original sponsors of the Corporate Transparency Act have filed an amicus brief in the appeal against an Alabama court ruling that the law is unconstitutional, which would throw into question Treasury's newly-established beneficial ownership structure.
The Connecticut bank —a regional traditionally regarded as a cautious lender — said nonperforming loans and leases rose 53% year-over-year. The uptick was in mostly the commercial-and-industrial loan space, although there was one nonperforming commercial real estate loan, executives said.
The two regional banks are anticipating that borrower demand will increase in the back half of the year. High interest rates and economic uncertainty have been muting the appetite for borrowing.
In a letter to Treasury Secretary Janet Yellen last week, the Massachusetts senator highlighted the growing use of cryptocurrencies by malicious organizations abroad and underscored the need for anti-money-laundering and counterterrorism provisions in future proposals.
