(Bloomberg) Regional lenders including Fifth Third Bancorp and BB&T Corp. are rooting for the Federal Reserve to let interest rates rise, a move that could help their results more than at some of the biggest Wall Street firms.
Kevin Kabat, chief executive officer at Fifth Third, Ohios largest bank, and BB&Ts Kelly King told a New York investor conference yesterday they have a chance to reinvest fresh cash from lower-yielding investments as government debt pays the most since 2011. Unlike JPMorgan Chase & Co. or Bank of America Corp., the two biggest U.S. lenders, their firms hold fewer securities subject to markdowns as long-term rates rise.
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