Financial exchange traded funds rose Monday as U.S. banks were seen faring better than their European counterparts under new capital rules. Bank of America (NYSE: BAC) led large-cap bank stocks higher after a Wall Street analyst reportedly said the shares are a buy due to a rock-bottom valuation.
The Basel Committee on Banking Supervision over the weekend announced new rules on bank capital levels. One decision on capital requirements was a win for U.S. regulators over European counterparts, Bloomberg reported.
Banks have until 2019 to meet the new requirements, which call for capital reserves between 8% and 9.5%.
Financial Select Sector SPDR Fund (NYSEArca: XLF) rose nearly 1% on Monday.
Top holding Bank of America rallied more than 2%, while Citigroup (NYSE: C) and JP Morgan (NYSE: JPM) added about 1%.
Rochdale Securities analyst Richard Bove said Bank of America shares are “massively undervalued,” CNBC.com reported.
Financial Select Sector SPDR Fund
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