If you’re looking at your portfolio and wondering why the banks are bleeding out today, it’s basically a perfect storm of regulatory hammers and policy shifts.
* Bank of America just got hit with $250M in fines from the CFPB for "junk fees" and opening unauthorized accounts. It’s a massive reputational hit, and $BAC is leading the slide, down over 4.6%.
* **T**There’s a serious push in D.C. right now to cap credit card interest at 10%. For banks like JPM and Citi, credit cards are their biggest cash cows. If this actually goes through, their 2026 profit margins are going to be gutted.
* Between the uncertainty over new tariff policies and a growing fear that private credit loans are starting to sour, big money is rotating out of financials and hiding in safer spots.
We’re seeing a valuation reset. The market is realizing that the easy money for banks in 2025 might be over as regulatory oversight ramps back up.