Shares of Bank of America are up 8% today and are now back above $6.20/share.What’s going on?
We’re not sure, but….
There’s some trader chatter going around that it has to do with gossip about Obama doing a massive refinance plan, and the person we heard that from connected it with the bank rally.
It’s not just Bank of America. Other big ones are outperforming, as well.
The gossip is probably due to this blog post yesterday from James Pethokoukis, wherein he speculated that we’d see a “January Surprise” in the form of a big refinance plan.
Two things: We’re not really sure if this kind of big refinance scheme would necessarily be that great for banks. It might be, but we’re not sure.
Second, Pethokoukis forwarded a similar idea back in August 2010, and it didn’t happen.
So, grain, salt, etc.