U.S. bank stocks rise as welcome Powell renomination as Fed chair

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NEW YORK (Reuters) -U.S. bank stocks rose on Monday as senior bankers and industry figures welcomed Federal Reserve Chair Jerome Powell’s nomination by President Joe Biden for a second four-year term.

Biden, in a statement emailed to reporters, paid tribute to the “decisive action” which the Fed had taken in response to the COVID-19 pandemic.

And senior bankers echoed the presidential praise for Powell’s swift and steady hand during the coronavirus crisis.

“Chairman Powell has been a steadying force throughout the pandemic and I’m glad to see him continue in this role,” Cristiana Riley, chief executive of Deutsche Bank (DE:DBKGn) Americas U.S. business, said.

“Consistency at the top of the Federal Reserve is reassuring during this critical point in the post-pandemic recovery.”

The White House said Lael Brainard, the Federal Reserve board member who was the other top candidate for the job, will be vice chair.

The S&P 500 bank index was up 2.6%, on pace for its biggest daily percentage gain in 5 weeks.

Kevin Fromer, CEO of the Financial Services Forum, which represents the largest eight U.S. banks and their CEOs, congratulated both Powell and Brainard.

“We expect regulators will continue to hold the largest banks to the high regulatory and supervisory standards that have remained in place to support a resilient and essential part of the U.S. financial system.”

While Wall Street cheered the renomination https://www.reuters.com/business/finance/biden-renominates-powell-fed-chairman-brainard-vice-chair-2021-11-22 of Powell, Democratic progressives were left frustrated at the White House’s failure to announce a tough new regulatory chief who they hope will crack down on banks.

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