Bank stocks are rallying this morning on the federal government’s action to put Fannie Mae and Freddie Mac into conservatorship. The S&P Banking Index [BIX] is up 2.7% to 198.19 and the NASDAQ Bank [IXBK] is 2.56% higher to 2,460.14, as of 10:34 a.m. ET.
The stock prices of particular banks are also climbing, including JPMorgan Chase, Wachovia Corp. Bank of America Corp., and Wamu Inc.