Shares of Bank of America (BAC) and Wells Fargo (WFC) have been on a roll in recent days and the New York attorney general's pledge Monday to sue the banking giants did nothing to slow their momentum.
On what was a record day for Wall Street, B of A's and Wells' shares hit 52-week highs Tuesday, as investors essentially shrugged off charges that the banks violated terms of last year's national mortgage settlement that requires them to offer relief to underwater mortgage customers.
B of A's shares, which jumped 5% Monday on news that it agreed to settle a five-year-old dispute over soured mortgages, climbed another 0.4% Tuesday, to close at $12.93. Wells' shares rose 1.4%, to close at $38.41. B of A was also the most traded stock of the day, as more than 205 million shares changed hands.
Investors flocked to other bank stocks as well Tuesday on signs that the economy may be picking up steam. Citigroup (NYSE: C), Regions Financial (RF), Fifth Third Bancorp (FITB) and Comerica (CMA) all hit 52-week highs Tuesday, as did several smaller regionals and community banks, including First Niagara Financial Group (FNFG) of Buffalo, People's United (PBCT) of Bridgeport, Conn., and Banner Corporation (BANR) of Walla Walla, Wash.
Meanwhile, shares of JPMorgan Chase (JPM) climbed more than 2%, to close at $49.15, amid reports that several proxy firms are advising clients to oust several directors and split the roles of chairman and chief executive.
The spike in JPMorgan Chase's shares helped lift the Dow Jones industrial average to a record of 15,056. It marked the first time that the Dow had closed at above 15,000.
