Bank Stocks Soar After Central Bank Liquidity Move (MS) (BAC) (C) (JPM)
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Financial stocks are getting a shot in the arm following the announcement of a coordinated effort from the Fed and five other central banks to boost liquidity.
The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank are today announcing coordinated actions to enhance their capacity to provide liquidity support to the global financial system. These central banks have agreed to lower the pricing on the existing temporary U.S. dollar liquidity swap arrangements by 50 basis points so that the new rate will be the U.S. dollar overnight index swap rate plus 50 basis points.
"The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity," the Fed said.
Financial Stocks:
Morgan Stanley (NYSE: MS) 8% HIGHER;
Bank of America Corporation (NYSE: BAC) 6% HIGHER;
Citigroup, Inc. (NYSE: C) 6% HIGHER;
JPMorgan Chase & Co. (NYSE: JPM) 6% HIGHER;
The Goldman Sachs Group, Inc. (NYSE: GS) 5% HIGHER;
Wells Fargo & Company (NYSE: WFC) 3% HIGHER;
The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank are today announcing coordinated actions to enhance their capacity to provide liquidity support to the global financial system. These central banks have agreed to lower the pricing on the existing temporary U.S. dollar liquidity swap arrangements by 50 basis points so that the new rate will be the U.S. dollar overnight index swap rate plus 50 basis points.
"The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity," the Fed said.
Financial Stocks:
Morgan Stanley (NYSE: MS) 8% HIGHER;
Bank of America Corporation (NYSE: BAC) 6% HIGHER;
Citigroup, Inc. (NYSE: C) 6% HIGHER;
JPMorgan Chase & Co. (NYSE: JPM) 6% HIGHER;
The Goldman Sachs Group, Inc. (NYSE: GS) 5% HIGHER;
Wells Fargo & Company (NYSE: WFC) 3% HIGHER;
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