The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookiesbefore using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Coronavirus: US banks may need regulatory relief for capital markets to function

The Fed has provided abundant financial support to the core government bond markets to little effect and may now need to ease rules on dealer banks.


On Friday, after president Donald Trump’s rose garden press conference with corporate chief executives to announce he was taking coronavirus seriously and declare it a national emergency, Bank of America’s share price shot up 17.8%.

Then, on Sunday, the Federal Reserve cut interest rates by 100 basis points, encouraged banks to use the discount window at an even further reduced cost and announced a $700 billion quantitative easing (QE) programme.

On Monday, Bank of America’s share price fell 15.3%.

These are not normal moves, but then these are not normal times.

The recession that is coming from the economic sudden stop to repress the coronavirus makes fundamental analysis of company values impossible. That’s not what these share price movements are about. They are about panic.

But they also show that this real economy shock, even though it did not start in the banking industry or in the financial markets, still threatens to overwhelm both.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?