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NEW YORK - Many regional bank stocks rebounded Wednesday after diving to multiyear lows earlier in the session, as President Barack Obama unveiled the details of a $75 billion plan to stem home foreclosures.
Among the biggest advancers were SunTrust Banks Inc., which jumped 40 cents, or 5.6 percent, to $7.51, and U.S. Bancorp, which gained 50 cents, or 4.7 percent, to $11.23. SunTrust shares had earlier fallen to a new low of $6.87, while U.S. Bancorp shares dropped as low as $10.09, a level not seen since 1996.
BB&T Corp. rose 48 cents, or 3.4 percent, to $14.74. Shares hit a 13-year low of $14.16 earlier in the day. Huntington Bancshares advanced 3 cents, or 2.2 percent, to $1.34, after falling to as low as $1.27.
Obama's plan aims to stabilize the housing market, the decline of which has been at the root of many banks' problems. Most banks have been forced to set aside large amounts of cash to cover losses as defaults on mortgages have spiked. The government's initiative seeks to aid borrowers who owe more on their mortgages than their homes are currently worth, as well as those who are on the verge of foreclosure. Obama hopes the plan can keep up to 9 million Americans from losing their homes.
At the same time, the Treasury Department said it would double the size of its lifeline to Fannie Mae and Freddie Mac, the mortgage finance companies the government seized last fall. The Treasury will now absorb up to $200 billion in losses at each company.
The announcements come one day after Obama signed a $787 billion economic stimulus plan into law.
Among the decliners in the sector were PNC Financial Services Group Inc., which lost $1.13, or 4.3 percent, to $25.34, and Fifth Third Bancorp, which shed 14 cents, or 8.4 percent, to $1.53.
Wells Fargo & Co. shares hit a 12-year low of $12.06. Recently, shares traded down 51 cents, or 3.7 percent, to $13.18.
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