Financial exchange traded funds bounced Friday afternoon along with Citigroup (NYSE: C) and Bank of America (NYSE: BAC) following a report that major global lenders will get a break on new capital rules.
“The world’s major banks are likely to get an extra capital charge in the 2% or 2.5% range, rather than the 3% that has been widely reported,” reported CNBC’s Steve Liesman, who covers the Federal Reserve and the economy.
The move would likely help major U.S. banks such as Citigroup, Bank of America, Wells Fargo (NYSE: WFC) and JP Morgan (NYSE: JPM), according to the report, which sourced officials after global banking regulators met this week in Frankfurt.
Bank stocks jumped immediately in the wake of the report.
A financial ETF was back at the flat line in the last hour of trading Friday after being down as much as 2% earlier.
Financial Select Sector SPDR Fund (NYSEArca: XLF)
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