Cheaper oil seen a boon for US banks
Trading expected to jump, consumers will have more money to spend
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THE benefits of cheaper oil for the biggest US banks - a jump in trading and consumers with more money to spend - will outweigh the costs, according to executives and analysts.
The collapse of crude has drawn hedgers and speculators back into the market, boosting volumes and volatility, KBW Inc analysts wrote in a Dec 11 note. Retail banking also may benefit from more confident consumers as lower energy costs bring a US$900 average windfall for each US household, Citigroup Inc chief executive officer Michael Corbat said last week.
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