Bank stocks rebounded Monday after falling more than 3% last week on fears of deteriorating credit quality.
Financial services stocks went into a tailspin on the news that Bank of New York Co. had to increase its loan-loss reserves because of rising credit card delinquencies.
But Monday, the Standard & Poor's index of major banks rose 1.11%, compared with a 0.30% rise in the overall S&P, leading analysts to conclude credit concerns had abated somewhat.
Bank of New York, which fell nearly 4% last week, rose 62.5 cents to $51.875 Monday. Other standouts included NationsBank Corp., up $1.25 to $80.125, First Bank System Inc., up $1 to $57.50, Citicorp, up $1.125 to $81.625, and Chase Manhattan Corp., up $1.25 $68.75.