Bank of America & JP Morgan rise as other banks fall on 100 Mortgages

On Friday the shares in Bank of America Corp, JPMorgan Chase & Co rose up as other banks Morgan Stanley and Goldman Sachs Group declined. Bank of America closes up on Friday more than 6 percent at $20.87 and JPMorgan up 13 percent at $14.64. Citigroup who pulled out of a deal with Wachovia on Friday also closed up 9 percent or $14.11.

But Goldman Sachs and Morgan Stanley who not so long ago converted to bank holding companies to help boost consumer confidents and deposits saw their share prices fall 12 percent and 22 percent, respectively.

It’s been said that the rise could be due to investors buying shares believing government backing could happen over the weekend to stabilize Morgan Stanley and the rest of the market.

Some experts believe that the increase in the commercial paper market which is crucial for banking funds is the reason to why the banking shares had a boost, and with the anxiety surrounding the financial system any good news could set stage for a dandy rally.

Merrill Lynch & Co Inc which agreed in September to sell itself to Bank of America went up from a year low set on Thursday to $15.75, up more than 18 percent. The shares are trading at 14 percent lower to the price applied by the Bank of America’s offer, taking this into consideration it could mean the deal may not go through, although its believe Merrill Lynch will find it hard pushed to survive alone.

Source: Reuters

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