Washington’s “financial stability plan” unveiled Tuesday has fuelled some of the most volatile trading in recent history for US regional bank stocks. Investors’ hopes for the plan, which drove up regional bank stocks last week, were dashed amid widespread criticism of its lack of detail. Several regional bank stocks lost more than a quarter of their value on fears that the plan would amount to a creeping nationalisation of the US banking system. Details of the plan here.

This entry was posted by Gwen Robinson on Thursday, February 12th, 2009 at 5:00 and is filed under Capital markets. Edit this entry.