Morgan Stanley (MS), Others Surge on EU Bank Recap Talk
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U.S. bank stocks, led by Morgan Stanley (NYSE: MS), surged into the close following reports EU finance ministers are looking at ways to coordinate the recapitalization of banks.
Shares of U.S. banks have been under heavy pressure on worries about exposure to Euro-zone banks. In essence, a bailout of Euro-zone banks would effectively limit or extinguish U.S. bank's risk.
Morgan Stanley (NYSE: MS) rose 12.3 percent, Goldman Sachs Group, Inc. (NYSE: GS) jumped 5 percent, Citigroup, Inc. (NYSE: C) rose 5.5 percent and Bank of America (NYSE: BAC) jumped 4.2 percent.
Some suggested short covering into the close exasperated the move in Morgan Stanley. However, this same short-selling pressure was likely to blame for the recent swoon in the stock.
The FT story (Read here) is essentially just more rumors, but it was enough to combat the rumors that have been taking down the U.S. bank stocks... at least for today.
Shares of U.S. banks have been under heavy pressure on worries about exposure to Euro-zone banks. In essence, a bailout of Euro-zone banks would effectively limit or extinguish U.S. bank's risk.
Morgan Stanley (NYSE: MS) rose 12.3 percent, Goldman Sachs Group, Inc. (NYSE: GS) jumped 5 percent, Citigroup, Inc. (NYSE: C) rose 5.5 percent and Bank of America (NYSE: BAC) jumped 4.2 percent.
Some suggested short covering into the close exasperated the move in Morgan Stanley. However, this same short-selling pressure was likely to blame for the recent swoon in the stock.
The FT story (Read here) is essentially just more rumors, but it was enough to combat the rumors that have been taking down the U.S. bank stocks... at least for today.
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