Which of the Big 4 Banks Should You Buy in This Monetary Environment?

With the novel coronavirus creating widespread disruption across stock markets, the Federal Reserve is now intervening in a big way by dropping its benchmark interest rates practically to zero, starting its quantitative easing program again, and injecting $1.5 trillion into the overnight repurchase agreement operations (repo) market. The goal of the various moves (with more likely on the way) is to ensure that consumers can still take on credit, to protect liquidity in the banking system, and to support the smooth functioning of the bond markets.

Stock prices at the four largest banks in the country -- Bank of America (NYSE: BAC), JPMorgan Chase (NYSE: JPM), Citigroup (NYSE: C), and Wells Fargo (NYSE: WFC) -- have been hit hard in past weeks. It's difficult to know if the Federal Reserve really has enough in its tool belt to overcome the economic effects of the COVID-19 pandemic. But if you are looking to buy at a potential bargain, one thing you can look at with a little more certainty from an investing standpoint is how these banks will fare under these monetary conditions. 

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Source Fool.com