Mayo Says ‘Game On’ for Banks as JPMorgan, Goldman Notch Records

Loosening regulations, the steady drumbeat of dealmaking, elevated interest rates: It’s a recipe for US banking stocks shares to keep ripping higher.

Long an underdog in the broader market’s blistering rally, bank stocks are finally starting to catch up. With quarterly earnings, stress test results and the easing of bank capital rules on the horizon, JPMorgan Chase & Co.and Goldman Sachs Group Inc. are clearing a path for peers. JPMorgan, the biggest US bank, notched a record Thursday after also closing at a fresh high on Wednesday. Goldman also closed at an all-time high.

“You have a triple play ...