Here’s Why Bank Shareholders are Smiling Now

Financials (NYSE:XLF) are rallying strongly on news that Germany (NYSE:EWG) and France (NYSE:EWQ) are moving purposefully to help recapitalize European banks (NYSE:KBE) in the midst of the European financial crisis. Major Banks are up 3-4 %.

Bank of America (up 4.66%) and Morgan Stanley (up 6.81%) led out of the gates, while the The Financial Select Sector SPDR ETF (NYSE:XLF) — which tracks the financial stocks in the S&P 500 — jumped 3.42%. Keep your eye on the entire banking sector today.

BAC (NYSE:BAC) is trading at $6.16 today, up 4.41%. Shares are down 55.24% in one year. The stock’s trading range for the year is between $5.13 and $15.31.