Bank Stocks Just Got Some Very Good News
If you're a bank or a shareholder of one, last week brought good news.
On March 19, the major regulators of U.S.-based banks -- the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency -- proposed several regulatory changes that, if approved, will reduce banks' capital requirements, giving them additional funds to lend, buy back shares, and issue dividends.
A bit of context is in order here. After the 2007-2008 financial crisis, when the federal government bailed out many banks, capital standards for banks in the U.S. were tightened significantly in an effort to fend off another such crisis.
Source Fool.com
