In a historic rally for the American financial sector, the six largest US banks have added a staggering $600 billion in market value over the past year, propelling their collective valuation past the $2.3 trillion threshold as of early January 2026.
The surge—driven by the “Big Six” consisting of JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs, and Morgan Stanley—marks a widening chasm between US lenders and their international peers.
The Catalysts: Deregulation and “Capital Release”
Market analysts attribute the valuation spike to investor confidence in a new era of financial “looseness.” The Trump administration’s push to soften post-2008 crisis capital measures—specifically the Basel III Endgame rules—has acted as a powerful tailwind for bank stocks.
- Leverage Relief: Recent federal moves to ease supplementary leverage ratios are expected to unlock approximately $2.6 trillion in lending capacity.
- Profitability Uplift: Firms like Jefferies project that these reforms could drive a 35% increase in earnings per share across the sector through 2026.
- M&A Revival: A stabilization in interest rates combined with lower regulatory hurdles has triggered a “gold rush” in investment banking and strategic mergers.
Market Cap Leaderboard
While the entire sector has benefitted, JPMorgan Chase remains the undisputed heavyweight, recently hitting an all-time high with a market cap exceeding $880 billion.
| Bank | Market Cap (approx.) | 2025 Value Gain |
| JPMorgan Chase | $888 Billion | +$160 Billion |
| Bank of America | $413 Billion | +$105 Billion |
| Wells Fargo | $302 Billion | +$110 Billion |
| Goldman Sachs | $215 Billion | +$60 Billion |
The Transatlantic Divide
The $600 billion gain underscores a stark divergence from European markets. The top six US banks are now worth more than double their six largest European rivals combined ($2.37T vs $1T). While US regulators focus on releasing capital to spur private-sector growth, EU and Swiss lenders remain constrained by stricter capital requirements, leading to what The Business Times describes as a “cemented valuation premium” for American institutions.
The “Wartime” Risks
Despite the euphoria, some economists, including former Treasury Secretary Larry Summers, suggest that thinner mandatory capital buffers shift the burden of risk management from regulators to the institutions themselves. With less of a safety net, internal stress-testing will become the primary defense against potential shocks in the commercial real estate or private credit markets.
