Bank Stocks Soar – Fed Chairman Bernanke Helps Bring Confidence Back to Banks

admin — Wed, 25 Feb 2009 00:56:45 +0000

Bank stocks experienced a strong rebound in Tuesday’s trading as the The Fed Chairman Bernanke addressed the nation and assured investors that though the recession would linger longer, banks were going to survive. In response to the remarks, Bank of America and Citi Bank’s stock shot up over 20%. This rise in stocks puts an end to the 6 day selling streak the Dow experienced as well as the slaughtering of financials we have seen the past week.

This confidence boost was sorely needed in the financial sectors as rumors of bank nationalization and bankruptcy began to make their way around investors and analysts. President Obama and his staff continue to work on their plan to help slow foreclosures and to help consumers in modfiying their loan. We are expecting a more detailed plan to come out the next few weeks, as well as more financial institutions to come a board with Obama’s plan to work with consumers with loan modification. Having the discount rate at 0%, today provides a very unique time to have the opportunity to lock in a loan under 5%. This is crucial as many analysts believe that following the recession, we could experience rapid inflation, which could possibly send interest rates back into the teens. Talk to a professional today and begin the process of modifying or refinancing your loan!

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Bank Stocks Soar – Fed Chairman Bernanke Helps Bring Confidence Back to Banks