Financials Feel TARP's Healing Power

These stocks have recovered mightily in the wake of government intercession.
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By Kevin Grewal, contributing analyst at

Since its inception in 2008, many critics have been skeptical of whether or not the Trouble Asset Relief Program (TARP) would work, but it sure looks like it's working for some. Several months later, many recipients of TARP are pleading to pay it back as they are finally looking financially healthier and are showing magnificent returns. Over the last few months, here are some institutions that investors have been gobbling up.

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Fifth Third Bancorp

(FITB) - Get Report

hit a low on Feb. 20 at $1.03. On June 5 it closed at $7.13 per share, surging a whopping 592%.

Since hitting a March low of $8.31

Capital One Financial

(COF) - Get Report

has nearly tripled to close at $24.11 at the end of the first week of June

After hitting a January low of $14.89

State Street

(STT) - Get Report

has rebounded beautifully to close at $47.27 on June 5; a gain of 217%.

Bank of America

(BAC) - Get Report

witnessed a May 6 low of $3.14, but closed June 5 at $11.49, a remarkable gain of 286%.

Wells Fargo

(WFC) - Get Report

has nearly doubled from its March 5 low of $8.12 to close at $24.72 on June 5.

This doesn't mean that all investors should jump on the bandwagon and chase these huge gainers. As with everything else, huge gains come with huge risks. Investing in equities is no exception, and for this reason it is imperative to always have an exit strategy.

According to the latest data from, here are the price levels where the aforementioned stocks would be in trouble: Fifth Third at $5.71; Capital One at $19.98; State Street at $39.57; BofA at $9.94; and Wells Fargo at $21.94. These levels change daily and are available for free at