Bank stocks and the broader market soared Friday to cap one of the financial sector's most volatile weeks in recent memory, one of daily bombshell reports of bankruptcies, mergers, and government intervention.

The KBW Bank Index gained 12.65% to end the week up 16.25%. Thursday and Friday brought the second- and third-biggest one-day gains in the index's 16-year history, trumped by a 17% gain on July 16, when Wells Fargo & Co. reported better-than-expected second-quarter profits and raised its dividend during a bleak earnings period. The week's gains were the best since March 2000

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