With billionaire and businessman Donald Trump re-winning the White House, financial stocks, in general, and bank stocks, in particular, surged in Wednesday premarket trading as his administration is expected to have a light touch on regulation.

The Financial Select Sector SPDR ETF (XLF) climbed 5.5%, The S&P Bank ETF (KBE) jumped 7.3%, and the S&P Regional Banking ETF (KRE) climbed 8.5%.

Wells Fargo (WFC) stock soared 9.8%, JPMorgan Chase (JPM) stock rose 6.6%, and Goldman Sachs (GS) climbed 7.1%.

Among regional banks, First Horizon (FHN) +11%, Western Alliance Bancorporation (WAL) scaled up 9.0%, Bank OZK (OZK) rose 8.6%, and KeyCorp (NYSE:KEY) advanced 8.2%.

Credit card issuers, especially, are expected to benefit from an administration that's expected to ease regulations. And investors may be expecting that Capital One Financial (NYSE:COF) will have an easier time in gaining regulatory clearance for its pending acquisition of Discover Financial (NYSE:DFS). DFS stock surged 14%, and COF rose 11%. Synchrony Financial (NYSE:SYF) climbed 12%.

Of course, it still remains to be seen what the Federal Reserve, the FDIC, and the Comptroller of the Currency will decide in terms of the final Basel III endgame rules regarding how much capital banks will be required to hold.

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