By Nicholas Santiago on May 11th, 2010 1:00pm Eastern Time
The large major U.S. banks are all holding steady today after yesterday's $1 trillion bailout by the European Central Bank(ECB). In reality the E.C.B. and the International Monetary Fund (IMF) bailed out the European banks that hold the debt from the defaulting nations such as Greece, Spain, Portugal, Italy, Ireland, and many others. This program is very similar to the Toxic Asset Relief Program (TARP) that the United States passed in October 2008.
Today the leading major banks such as J.P. Morgan Chase & Co (NYSE:JPM), Bank of America Corp (NYSE:BAC), and Wells Fargo & Co (NYSE:WFC), are all trading slightly higher on the session continuing their upside momentum from yesterday.
Goldman Sachs Group Inc (NYSE:GS), and Morgan Stanley (NYSE:MS) are both positive on the session. Remember Goldman Sachs Group and Morgan Stanley are both structured as banks since the financial crisis in 2008. Therefore, these leading financial institutions can borrow from the Federal Reserve Bank at a very low interest rate.
Anytime $1 trillion dollars can be thrown at the stock market in the form of a bailout the stock market should get a rally. That is exactly what we have seen yesterday and today. Right now the sky is clear and all is well again in the stock market until the next storm cloud starts to form.
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