NEW YORK (TheStreet) -- Shares of Goldman Sachs (GS) - Get Report were among the winners in the financial sector Monday as the firm and its cohorts at the top of American finance prepared to lobby hard against the new banking strictures proposed last week by the White House.
Goldman shares closed Monday's session at $154.98, up 0.6%, paring some of their gains earlier in the day, when they advanced by more than 2%.
Other names bounced as well, clawing back at least some of the heavy losses suffered last week, when investors sold off financial shares in response President Obama's plan to effectively reinstate -- under the so-called "Volker Rule" -- the financial-industry regulations that were repealed in the years before the crisis.
The selloff came despite stellar quarterly results from the likes of
, which again blew past estimates on the back of its highly lucrative trading desks -- the very entities that the Obama administration hopes to separate from depositary banks.
But word also emerged late Monday that the
may allow some firms to ditch their bank holding company status so that they can hang onto their valuable trading operations, thus sidesteping the Volker Rule,
The New York Times
Such a plan would have the most relevance for Goldman Sachs and its rival
-- the only two pure investment banks left standing after the crisis -- who assumed the "bank holding company" moniker at the height of the meltdown so as to come under the protective umbrella of the federal government.
Shares of Morgan Stanley lost ground Monday, closing at $27.74, down 6 cents.
Aggressive PR countermeasures from the big firms and megabanks have already started, as plutocrats from around the globe descended on Davos, Switzerland, for the annual World Economic Forum. Davos founder George Soros, interestingly enough, has praised the Obama plan, but pressure was sure to be applied to the White House from many of Wall Street's bigger players.
Also rising Monday were shares of
which, along with Goldman, may emergewith fewer scars than its peers from any pruning that occurs because ofthe proposed banking laws. Wells shares rose 1.5% to close at $27.66 Monday afternoon.
Among other megabanks,
Bank of America
inched higher by 0.5% to $14.98;
lost two pennies to $3.23; and
JP Morgan Chase
gained 5 cents to finish the session at $39.21.
European banking names posted sharp gains Monday, with the New York-listed issues of
all rising by more than 2%.
The Financial Times
published a report Monday on a survey it conducted of banking executives, who by and large indicated that European firms could achieve a competitive advantage over their U.S. peers if the Volker Rule becomes law.
At the close Monday, Credit Suisse's American depositary receipts had advanced 4.3% to $46.29, Deutsche Bank gained 2.8% to $64.33 and Barclays jumped 5.4% to $18.02.
-- Written by Scott Eden in New York
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Scott Eden has covered business -- both large and small -- for more than a decade. Prior to joining TheStreet.com, he worked as a features reporter for Dealmaker and Trader Monthly magazines. Before that, he wrote for the Chicago Reader, that city's weekly paper. Early in his career, he was a staff reporter at the Dow Jones News Service. His reporting has appeared in The Wall Street Journal, Men's Journal, the St. Petersburg (Fla.) Times, and the Believer magazine, among other publications. He's also the author of Touchdown Jesus (Simon & Schuster, 2005), a nonfiction book about Notre Dame football fans and the business and politics of big-time college sports. He has degrees from Notre Dame and Washington University in St. Louis.