The following video is from Monday's installment of Where the Money Is, in which Fool analysts Matt Koppenheffer and David Hanson highlight for investors the most important stock news from the financial sector.
In this segment, Matt discusses an article from The Wall Street Journal, which addressed the conflicting motivations between banking regulators and the big banks. As the spread between the interest rate at which banks can borrow money and the interest rate they are able to get for lending, or the net interest margin, continues to compress, many banks have been reducing the amount of long-term debt they have been carrying, as that often has a higher interest rate. Matt tells investors what it would mean for the big banks if regulations are imposed that require a higher amount of long-term debt to be maintained on these banks' balance sheets in preparation for the next banking crisis.
The relevant video segment can be found between 3:00 and 4:24 .
David Hanson owns shares of JPMorgan Chase. Matt Koppenheffer owns shares of Bank of America and JPMorgan Chase. The Motley Fool recommends and owns shares of Bank of America and Wells Fargo. It also owns shares of Citigroup and JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.