Financial Stocks Higher Ahead of Geithner's D-Day (BAC, WFC, C, JPM, USB)

After a wild week, financial stocks are higher this morning on hopes for the new financial bailout plan which is expected to be unveiled by Treasury Secretary Timothy Geithner on Monday.

There are still questions about how the bailout plan will be structured. For the past few weeks, it has been expected the center of the plan would be a 'bad' or 'aggregator' bank that will take the toxic assets off the books of the nation's banks. It now seems that government guarantees, through FDIC, on securities, loans, and other commitments of the banks may take a bigger role in the package. In addition, there is talk that the administration is considering expanding the Fed's consumer-lending facility, known as the Term Asset-Backed-Securities Loan Facility. The government may also take convertible preferred stakes that automatically convert into common shares instead of just preferred shares.

Earlier in the week there was talk of nationalization, but that talk has subsided recently. In fact, today Ladenburg Thalman banking analysts Dick Bove said a nationalization of Bank of America (NYSE: BAC) makes no sense.

Bank of America (NYSE: BAC) is up 15.7%, Wells Fargo (NYSE: WFC) is up 11.7%, Citigroup (NYSE: C) is up 9%, JPMorgan (NYSE: JPM) is up 6.6%, and US Bancorp (NYSE: USB) is up 4.5%.

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