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Banks and the Fed: Why this time is different

December 9, 2015

Bank stocks should rise along with interest rates, or so the thinking generally goes around Wall Street. The reality, though, is quite a bit more complicated.

Share performance once the Fed starts hiking depends on a slew of factors, including how quickly rates rise, what economic conditions are and how well the central bank sets forth the groundwork for tightening.

In the most recent rate-hiking cycles, bank stocks actually struggled. This time could work out better, one analysis suggests.

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