Published on 10th May 2015
Investors who piled into bank shares after the election results became known may have jumped the gun. True, the risk of a less disciplined approach to economic management by Labour has been eliminated. Continued economic recovery should loan losses continue to fall. Likewise, the risk of a costly experiment in turnin RBS into a regional bank has also been tossed out the window. The Tories's beloved challenger banks also stand to benefit now that Miliband's mansion tax plans are off the table and the sale (not public) of the state's sale of its Lloyds stake can resume.