NEW YORK - US Banks stormed higher today as investors are seeing better days ahead for the depressed financial sector. Previously the banks were held back on concerns the Obama administration would put on restrictive and unfair capital requirements on the banks, but this was likely nixed when the Republicans had one of the most historic victories in the most recent Congressional election. Investors were concerned about Basel II and III but most of the the American banks likely already meet the standards that Basel will require and it will not be fully implemented until 2019. After this it was the foreclosure scandal where US Banks lost nearly $100 billion of market capitalization in two days. Recently Bank of America was pushed lower on concerns of whistle blower Julian Assange of Wikileaks who said that a large bank would fail due to his information.
Outside of the first two points, U.S. Banks have moved lower on very minor news such as the Wikileaks Hoax and the foreclosure scandal. These two events allowed the cheapest sector from the recession to get cheaper.
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