US Mortgage Bailout Boosts World's Banks ; FINANCE
Condie, Bill, The Evening Standard (London, England)
SHARES in the world's biggest banks rocketed today following the bailouts of Freddie Mac and Fannie Mae.
Most of the main banks in London jumped more than 10%, with HBOS leading the field up 42p at 317 1/2p. Barclays was 42p higher at 539 1/4p and Lloyds TSB 33p up at 312p. Royal Bank of Scotland gained 26p to 245 3/4p.
"It is a big day for the banks. Mortgage rates could come down, and this should give some stability to the market," said one Paris- based strategist.
UBS, the worst hit of all the European banks by the subprime mortgagerelated losses, saw its shares surge 11%.
BNP Paribas jumped 8% and Credit Agricole surged 11%.
In Japan, Asia's biggest bank, Mizuho Financial, also rocketed 10%.
The FTSE 100 index jumped by 190 points to 5430.7, retaking some of the losses that piled up last week. Similar gains were seen on other global markets.
Analysts said the bailout the biggest in recent memory would go some way to easing the crisis of confidence in the global banking system.
"This is the beginning of the end of the problem," said Lucy McDonald, chief investmnet officer of global equities at fund manager RCM. …