Bank of America deregulation is good, Jefferies predicts 2.60 trillion dollar lending capacity will be released

U.S. bank deregulation is expected to free up about $2.60 trillion in lending capacity for large Financial Institution Groups, cementing higher valuations for U.S. lenders relative to European rivals, according to Jefferies Group analysts. Deregulation could "drive a substantial lift in lending, M & A and technology investment through 2026," and would boost earnings and market share, analysts Aniket Shah and Daniel Fannon, among others, wrote in a note on Friday. Citing discussions with Fernandodela Mora, co-head of financial services at Alvarez & Marsal, they wrote: "Capital release could strengthen U.S. banks' valuation premium relative to their European counterparts and support higher share prices." Trump administration officials are planning to soften bank capital measures put in place after the 2008 financial crisis. The Federal Reserve has circulated plans to significantly ease a Biden-era proposal aimed at boosting capital levels after banks complained it would limit their operations. European bankers and politicians also say the European Union's overly strict banking regulations are giving US lenders an advantage.