Rally in Bank Prices Losing Steam
The rally for bank stocks began to wane Wednesday, as euphoria over the proposed merger of BankAmerica Corp. and Security Pacific Corp. began to dissipate.
Security Pacific shares were up 12.5 cents, to $35.75, at 3 p.m., while BankAmerica had gained a modest 25 cents, to $43.675.
First Interstate Bancorp, which had surged on speculation that it might merge with Wells Fargo Co., was unchanged at $35.125. Wells was up $1, to $77.50.
Showing continued strength were shares in Phoenix-based Valley National, which is considered another possible partner for Wells. Valley's price was up a full $2, to $29.385.
Shares in Barnett Banks Inc., which had gained on speculation that it would be a merger target, gave back 75 cents.
Chemical Banking Corp., Manufacturers Hanover Corp., and State Street Boston Corp. all gained, partly on word that State Street is negotiating to buy Hanover's Tokyo trust business.