Guess who’re really thrilled with the Trump win?
Yep, those millionaires on Wall Street, the ones who run the investment banks, the same ones whose reckless speculations brought the global economy to its knees eight years ago.
From the Guardian:
Bosses at Morgan Stanley made more than $10m (£8m) selling shares in the investment bank as its stock surged on the back of Donald Trump’s presidential victory.
James Gorman, Morgan Stanley’s chief executive, made a $2.9m profit on Friday by exercising share options granted to him at $22.98 and then selling the shares at $37.70. A slew of other executives followed suit.
Morgan Stanley shares surged by nearly a fifth – to their highest in more than a year – following Trump’s victory last week. Overall US bank shares are enjoying their sharpest recovery rally since the 2008 to 2009 financial crisis as investors buy up bank stocks hoping that Trump’s promise of tearing up regulation will help banks make bigger profits. Traders also expect Trump’s plans for huge infrastructure investment to raise inflation and the Federal Reserve to lift interest rates, which would also help banks make more money.
The S&P 500 banks index, which tracks the biggest US banks, rose by 10.2% in the three days after Trump’s victory – the best three-day performance since August 2009. In those three days, Wells Fargo shares rose 13.6%, JPMorgan Chase shares rose 9.5% and Bank of America shares climbed 11.9%.