DPST - Headwind Number 3 For Banks: Fear Of Biden/Warren/Waters = Dividend Cut More Capital Lower ROE

• This fourth article on depressed bank valuations is not intended to be political commentary but a factual, data-driven analysis of the risk of a Democrat sweep on November 3.
• The first article noted that valuations are near record lows, yet insiders are not buying, and Buffett is a net seller of banks.
• The next two articles examined two headwinds holding back bank valuations: Investor Confidence and Uncertainty.
• This article describes the third headwind: The risk that a Democrat sweep in the 2020 election will result in banks having higher capital ratios, lower income, and lower returns than if there is no sweep.
• In addition, bank dividends are at risk: Senator Elizabeth Warren (Dem. MA), who is rumored to be the next Secretary of Treasury, is on record (July 29) advocating bank dividends be suspended.

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