Updated with market close information.



) -- Shares of

Bank of America

(BAC) - Get Bank of America Corp Report

rose over 2% on Monday to close at $8.25.

The broad indexes saw 1% after roughly two-thirds of Greece's parliament voted to approve a series of drastic cuts in spending and wages, to meet the austerity demands for approval of a second eurozone bailout of Greece, to the tune of 130 million euro ($171.5 billion). Under the agreement, Greece's debt would also be cut by roughly 100 billion euro. Meanwhile, protests against the cuts spread across Athens, and European leaders were scheduled to meet in Brussels on Wednesday, to decide on the bailout package.


The KBW Bank Index


rose 1% to close at 44.90, with all but five of 24 index components showing mid-day gains.

Bank of America's shares have now returned 48% year-to-date, after declining .58% during 2011.

Of course, the biggest recent news for Bank of America is the company's $11.8 billion contribution to the

mortgage foreclosure settlement

. Wells Fargo analyst Matthew Burnell on Friday reduced his 2012 earnings estimate for Bank of America to 60 cents a share from 75 cents, and his 2013 estimate to a dollar from $1.25, because of the company's warning on lower net interest income because of the refinancing and principal forgiveness under the settlement.

Then again, potential good news out of Europe can only be good news for the company, which reported total exposure to Greece of $473 million to Greece as of Dec. 30, with total "select European exposure" to Greece, Ireland, Italy, Portugal and Spain, of $14.4 billion.

Bank of America's shares are still heavily discounted, at 0.7 times tangible book value, according to HighlineFI, but at Friday's close, the shares traded for 11.5 times the consensus 2012 EPS estimate of 70 cents, among analysts polled by Thomson Reuters. This is a rather high multiple to earnings for a "big four" U.S. bank in the current market environment.

Interested in more on Bank of America? See TheStreet Ratings' report card for this stock.

Shares of


TheStreet Recommends

(C) - Get Citigroup Inc. Report

faded from earlier gains and were down a nickel for the session, closing at $32.88.

The shares have now returned 25% year-to-date through Friday's close at $32.92, after a decline of 44% last year.

Along with Bank of America, Citi was expected to have its

debt downgraded by Moody's Investor Service

, because of ""Eurozone weakness and elevated economic and market uncertainties," according to a research report published Monday by CreditSights.

Citigroup reported that for its core Citicorp unit, 63% of 2011 and 72% of 2011 operating profits came from outside North America, making it clear that for Citi's investors, quite a bit is riding on European stability.

Like Bank of America, Citi's shares are trading for 0.7 times tangible book value, but the forward earnings multiple is a much lower eight times the consensus 2012 earnings estimate of $4.04 a share.

Interested in more on Citigroup? See TheStreet Ratings' report card for this stock.


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Written by Philip van Doorn in Jupiter, Fla.

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Philip van Doorn


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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.