Updated with market close information.
NEW YORK (
was the winner after a euphoric trading session for U.S. financial stocks on Thursday, with shares jumping 17% to close at $19.40, after European leaders agreed on a deal to stem the eurozone debt crisis
Following overnight negotiations among European leaders in Brussels, investors breathed a sigh of relief after French President Nicolas Sarkozy said that the European Financial Stability Facility would expanded five-fold to roughly ¿1 trillion, to provide guarantees on bonds of struggling eurozone member countries, and that private investors, including banks, would take 50% losses on Greek debt.
The European leaders also said that their agreement included ten new measures for improving eurozone governance, but didn't elaborate. The leaders emphasized their "unequivocal commitment to ensure fiscal discipline and accelerate structural reforms for growth and employment," saying that Spain, Portugal and Ireland were making necessary reforms and that Italy had made "strong commitments" to reform.
The broad indexes all saw 3% gains. The
KBW Bank Index
rose 6% to close at 41.96, with all 24 index components seeing gains of at least 3%.
Large U.S. financial names seeing 10% gains included
Bank of America
, which closed at $7.22;
, at $34.17;
, at $4.24; an
, closing at $116.47.
Large U.S. banks seeing shares rise 8% included
, closing at $5.40;
, at $37.00;
, at $41.89;
, at $21.01; and
, which closed at $18.29.
Written by Philip van Doorn in Jupiter, Fla.
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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.