Bank of America: Financial Winner
NEW YORK (TheStreet) -- Bank of America (BAC) was the winner among the largest U.S. financial names on Monday, with shares rising 3% to close at $7.96.
The broad indexes ended mixed, as investors seemed to take the defeat of French President Nicolas Sarkozy in stride, despite the aggressive tax policies favored by his socialist successor, Francois Hollande, which include an income tax rate of 75% on annual earnings of over one million euro, or $1.3 million.
At home, the Federal Reserve reported that U.S. consumer borrowing rose at an annual rate of 7.75% during the first quarter, with non-revolving credit increasing at a rate of 11.5%. In March, consumer borrowing increased at an accelerated pace of 10.25%, with student loans and automobile loans accounting for the bulk of new borrowing.
Bank of America's shares have now returned 43% year-to-date, following a 58% drop during 2011.