Fund Observer – In Wednesday’s State of the Union address, President Obama reiterated his plans to propose a tax on some of the country’s largest banks and legislation that could limit their size and restrict certain types of trading. A wave of populism has swept through the country, and big banks seem to be bearing the brunt of citizens’ frustration. Questions about what the final proposals will seek to accomplish has rattled the stock market.
What does this antibanker sentiment in Washington mean for investors? Jeff Arricale, manager of the T. Rowe Price Financial Services Fund (symbol PRISX), says that uncertainty about potential regulation hasn’t stopped him from investing in some of the biggest names in the banking industry. He runs a sector fund, meaning it primarily focuses on one slice of the market. The fund returned 28 percent in 2009 and an annualized 5 percent over the past decade. U.S. News spoke with Arricale to get a better understanding of the situation and who’s most likely to be affected by further regulation of Wall Street.
