Bank of America Stock Breaks Out After Powell Testimony

Bank of America Corporation shares rose more than 6% over the past two days after Jay Powell testified at his Federal Reserve chairman confirmation hearing on Tuesday. When asked whether post-crisis regulations needed to be further strengthened, Powell indicated that the regulations are “tough enough” and that there are no longer any banks that are “too big to fail.” This anti-regulatory stance was seen as a positive for the banking sector.

The $1.6 billion leveraged buyout of Barracuda Networks by Thoma Bravo has also opened the door to more private equity deals among larger banks. In the past, these banks had scaled back such deals to alternative lenders, but the acting comptroller of currency seems to be open to larger and more expensive deals. The Barracuda Networks transaction was valued at about 9x EBITDA – far higher than the 6x guidance from past regulators. (See also: Barracuda Networks Is Acquired for $1.6 Billion.)

Bank of America shares rose sharply following Powell’s confirmation hearing, but traders will be watching these key levels. …read more

Read more here: Bank of America Stock Breaks Out After Powell Testimony

Category: BAC

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