Bank of America Corp (BAC), JPMorgan Chase & Co. (JPM): Dow Soars but Banks Are Still in Limbo

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Which way is up?
Trying to figure out what environment is best for the banks can be difficult. On one hand, lower interest rates generate demand (and volume) for new loans that can allow higher fee revenue. On the other, higher interest rate spreads between long-term and short-term rates can give bank revenue a boost as well. Right now the banks are caught in the middle, but for long-term investors, knowing that the banks have capable management teams that know both sides of the coin and can navigate the transition may be the biggest concern.

The article Dow Soars but Banks Are Still in Limbo originally appeared on Fool.com.

Fool contributor Jessica Alling has no position in any stocks mentioned. The Motley Fool recommends Bank of America and Wells Fargo. The Motley Fool owns shares of Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo.

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