Bank stocks bounced back Monday from last week's broad downturn as investors looked for companies with value and predictable earnings that were unjustly dragged down by profit warnings Thursday and Friday from Wachovia Corp. and Unionbancal Corp.

Though analysts said the rebound that sent the American Banker index up 3% was unlikely to begin a sustained rally, some were recommending companies with diversified earnings less tied to commercial lending. Bank stocks were hit hard after Wachovia and Unionbancal - which is mostly owned by Bank of Tokyo-Mitsubishi Ltd. - said they were boosting their reserves against bad loans.

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