Shares of J P Morgan set a record high on Wednesday with recent gains in the entire banking sector attributed to widespread speculation Donald Trump will roll back many restrictive banking regulations.
On its website, Trump’s transition team promised to “dismantle” Dodd-Frank and “replace it with new policies to encourage economic growth and job creation.” The Dodd-Frank Law, enacted in the wake of the 2008 financial crisis, places restrictions on derivatives and limits proprietary trading at large banks like JP Morgan, among other measures.
Also buoying shares of JP Morgan are reports from CNBC that Trump is considering CEO Jamie Dimon for Treasury Secretary. Although Dimon has said in the past he’s not interested in the top finance job, his name has been mentioned repeatedly as a replacement for current Treasury Secretary Jacob Lew.
JPM last traded nearly 5% higher at $76.78 with a new 52-week range of $52.50 to $77.25.