Story updated with market closing information.
NEW YORK (
Bank of America
led the banking sector's rise on Monday, with shares soaring over 8% to close at $8.39.
The nation's largest bank announced it would sell part of its stake in
to a group of private investors for $8.3 billion in cash, for an after-tax profit of $3.3 billion. After the sale, Bank of America will still have a 5% stake in China Construction Bank.
Bank of America CEO Brian Moynihan estimated that during August, the company had raised "approximately" $5.8 billion in additional Tier 1 capital through "non-core asset sales" and other actions.
, as investors expressed relief that the damage from Hurricane Irene was less than expected. The
KBW Bank Index
climbed 4.5% to close at 39.84, with all 24 index components rising.
was up 8% to close at $4.36.
rose over 6% to close at $17.26.
Large U.S. banks seeing 5% gains for Monday's session included
, which closed at $21.74;
, closing at $31.29;
, at $25.22;
Fifth Third Bancorp
, at $10.518;
First Niagara Financial Group
, at $10.65;
, at $5.12;
, at $6.74;
PNC Financial Services
, at $49.31; and
, which closed at $19.82.
Written by Philip van Doorn in Jupiter, Fla.
To contact the writer, click here:
To follow the writer on Twitter, go to
Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.