Yet, surprisingly the bank stocks rally anyway! The thesis behind it is that the pieces apart are worth more than the sum of the parts. As always, whether any actual legislation will come of his statements is still uncertain.
ank stocks had been one of the biggest winners of the Trump trade, rallying strongly after his victory in the November presidential election. The sector rallied more than 25 percent in the immediate aftermath, but the bank ETF is down about 1.3 percent in 2017. The Glass-Steagall repeal is sometimes blamed for the financial crisis that peaked in 2008. However, many of the big institutions at the center of the crisis were not banking behemoths but rather investment banks or, in the case of American International Group, an insurer.