Big bank stocks including JPMorgan, Citigroup and Wells Fargo were trimming some of their earlier pre-market losses as investors assess the too-close-to call election results.
At the moment, Cowen analyst Jaret Seiberg expects Joe Biden to win the White House and Republicans to hold the Senate, which may hurt financial services companies as divided government would mean a smaller stimulus package. He also sees that outcome hurting Fannie Mae and Freddie Mac’s prospects for exiting government conservatorship and doubts a first-time home buyer tax credit would pass.
Terry Haines, a former Evercore ISI analyst who founded Pangaea Policy, sees the early, split results signaling a potential market positive: That there will be no major rollback of Trump-era policies, since there’s no voter mandate for significant change. He doesn’t expect any “major market unfriendly policy changes,” like altering the 2017 tax law.
At the moment, Cowen analyst Jaret Seiberg expects Joe Biden to win the White House and Republicans to hold the Senate, which may hurt financial services companies as divided government would mean a smaller stimulus package. He also sees that outcome hurting Fannie Mae and Freddie Mac’s prospects for exiting government conservatorship and doubts a first-time home buyer tax credit would pass.
Terry Haines, a former Evercore ISI analyst who founded Pangaea Policy, sees the early, split results signaling a potential market positive: That there will be no major rollback of Trump-era policies, since there’s no voter mandate for significant change. He doesn’t expect any “major market unfriendly policy changes,” like altering the 2017 tax law.