Q1 2015 U.S. Banking Review: Net Interest Margin

The discrepancy in the way investors' reacted to the bad news with respect to the financial sector stems from the Fed's likely response over the coming months. Given the slowing economic growth, investors now expect the Fed to maintain interest rates at their current low levels for a couple more quarters at least. While this will boost the performance of many sectors, it is bad news for the financial firms who are reeling under the impact of the prevailing low interest rate environment.