Additionally, banks have been fighting against increased compliance, regulatory and legal costs due to stricter rules following the financial crisis. Between the end of 2013 and the end of 2007, regulatory costs increased by over 100%, or $35.5 billion, to $70.2 billion for Bank of America (NYSE: BAC), Citigroup (NYSE: C), Goldman Sachs (NYSE: GS), JP Morgan Chase (NYSE: JPM), Morgan Stanley (NYSE: MS) and Wells Fargo (NYSE: WFC). [Post-Crisis Regulations Weigh on Financial ETFs]
However, the financial sector may be turning around after delivering its second-highest profit in at least 23 years for the three months ended June 30. [Financial ETFs Could Bank on Rising Profits]
Financial Select Sector SPDR
For more information on the financials sector, visit our financial category.
Max Chen contributed to this article.