NEW YORK- Many recently converted thrift companies' stocks surged Wednesday on market speculation that the Office of Thrift Supervision would relax its rules on stock repurchases for thrifts that recently have gone public.

The agency is planning to let recently converted thrifts buy back their shares more aggressively, said Mark Fitzgibbon, an analyst at Sandler O'Neill in New York, citing unnamed sources. In the past recently converted thrifts could only buy back 25% of their shares within the first three years of conversion. A draft of the proposal is likely to be made public within a few weeks, Mr. Fitzgibbon said.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.