Is the Government Finally Starting to Crush Bank Profits?

Updated

Emerging from the financial crisis, the government has implemented new regulations squarely aimed at the big banks like Bank of America and JPMorgan Chase . The latest potential hit is a proposed tax on the largest financial institutions that breach a given asset threshold. After additional costs from regulations like the Volcker Rule and loss of revenue due to things like interchange reform, is it finally time to start worrying about banks' profitability?

In this segment of The Motley Fool's financials-focused show, Where the Money Is, banking analysts Matt Koppenheffer and David Hanson debate the impact of these regulations and how it influences how they view bank stock multiples.

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The article Is the Government Finally Starting to Crush Bank Profits? originally appeared on Fool.com.

David Hanson owns shares of JPMorgan Chase. Matt Koppenheffer owns shares of Bank of America and JPMorgan Chase. The Motley Fool recommends Bank of America. The Motley Fool owns shares of Bank of America and JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Originally published