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MAR 15, 2010 6:21pm ET

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Monday's Bank Stock Wrap

Bank Stocks Take a Bungee Jump

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Banking stocks edged higher Monday ahead of the Federal Reserve's latest guidance on interest rates. The KBW Bank Index closed up 0.2%, at 50.56.

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The $25 billion mortgage robo-signing settlement is:
Political extortion from the banks in an election year
A slap on the wrist — the banks put reserves away for this long ago, they won't even feel it
A source of relief for both banks and homeowners that could help the housing market and economy recover
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