National City Bank stock lead US recovery

National City Corporation along with Sovereign Bancorp Inc have led gain among US regional banks after US lawmakers said they intend to salvage the $700 billion bank-rescue package that President Bush has been pleading to congress to pass.

Sovereign is America’s second largest savings and loan bank and leaped 65 percent to $3.85 making it the biggest increase since August 1986 after it was announced that the next chief executive officer would be Paul Perrault. Ohio’s biggest bank, National City Bank was another bank to improve on the stock marker with a jump of 32 percent to $1.79 at 9.53am in New York Stock Exchange composite trading.

Adding to this surges in the stocks were Cincinnati-based Fifth Third Bancorp and Birmingham and Alabama-based Regions Financial Corp all surged 21 percent.

This was good news after yesterday’s horrific day in Wall Street with the Dow Jones tumbling 778 points which erased more than $1 trillion in market value making it the biggest drop ever.

But as talks of the Senators will revive the US bailout confidence grew in the US banking system with a lot of the lost value being restored in Tuesday trading.

Read the full article: Bloomberg