JPMorgan Stock Could Soar to New Highs Thanks to These 2 Powerful Drivers

The U.S. banking sector has been under severe pressure from regulators for more than 15 years. Following the 2008 financial crisis and the subsequent introduction of the Dodd-Frank Act, the largest financial institutions in the United States have been placed under a regime of strict capital austerity.

The progressive tightening of requirements forced banks to "sterilize" colossal volumes of liquidity on their balance sheets. This artificially suppressed their profitability. Consequently, the sector turned into a category of outsiders that the market grew accustomed to treating with extreme caution.