NEW YORK (
Keefe, Bruyette & Woods
, a boutique investment bank that specializes in financial services firms, is making changes to three of its bank-related indexes.
KBW said after the market closed on Tuesday that it was replacing
Marshall & Ilsley
( MI), currently listed in its KBW Bank Index, with
New York Community Bancorp
( NYB). The KBW Bank Index, or more commonly referred to as the "BKX," tracks the largest 24 commercial banks in the U.S.
The BKX has seen strong gains in the past week, primarily due to renewed merger talk with U.S. commercial banks as well as a general sense that regional banks are looking to get out from underneath the government's TARP shackles. The index is up 3.8% since Dec. 15. M&A speculation has abounded in the bank sector for some time now, particularly as banks continue to suffer from credit headwinds, revenue challenges and a tough regulatory environment going forward.
M&I agreed last week to be acquired by
Bank of Montreal's
U.S. division, Harris Bank.
PNC Financial Services
was sniffing around at
also buoyed bank stocks last week.
said it would acquire
for more than $6 billion.
New York Community is being removed from the KBW Mortgage Finance Index, and replaced by
Old Republic International
, KBW said.
KBW is also increasing the shares of
First Niagara Financial
-- both part of the BKX -- and
, listed under the KBW Regional Banking Index.
First Niagara is getting a greater share due to its recent acquisition of New Alliance. Huntington Bank and Wintrust are being increased due to their recent equity offerings in order to repay TARP.
The changes will be effective before markets open for business on Monday, December 27, 2010.
-- Written by Laurie Kulikowski in New York.
To contact the writer of this article, click here:
To submit a news tip, send an email to:
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.