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News In Brief

Banks are jumpin’ and the market is high

Paddy Hirsch Aug 12, 2011

Bank of America, Citi, Wells, RBS, up, up, UP! Shares in banking companies sashayed higher today … and no-one could really explain why.

Many of these shares were bludgeoned by investors during the early part of this week, particularly Bank of America. The company’s shares lurched bank and forth in trading during the week: they plummeted 20 percent on Monday, recovered a little ground on Tuesday, and fell another 11 percent on Wednesday. They’re now down about 17 percent on the week.

BAC was probably the worst hit, but few financials escaped unscathed. Some investors explained the declines by citing concernsabout the economy, the housing market and the Eurozone. Others noted that those concerns have been hanging over the market for weeks, and there’s no new news driving financials back up again.

Actually, not all financials are up. Goldman Sachs, JP Morgan and Morgan Stanley were all lower in midday trading. Really? GS down and BAC up? How do you explain that?

You don’t. Or at least none of the usual sources have today. Traders and analysts seem to be dodging the question. Reporters don’t even seem to be asking the question.


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