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Major Banks Fail To Participate In Rally

This morning the stock market indexes are having their usually Monday rally on the back of the weaker U.S. Dollar Index. Almost every sector in the stock market is trading sharply higher. However, the large major banks such J.P. Morgan Chase & Co.(NYSE:JPM), Well Fargo & Co.(NYSE:WFC), and Bank of America Corp.(NYSE:BAC) are all trading basically flat on the session. This important industry group continues to lag the rest of the stock market as everything else around it continues to inflate higher. The airline, agriculture, and most commodity sectors are making new highs for the year today.

It is very important to remember that these three major large banks can borrow money from the Federal Reserve at zero percent interest. Therefore, they should continue to make money without making a single loan. These banks can just buy U.S. Treasuries and operate their credit card business and make money. Please remember that the average interest rate on a credit card is 16.50 percent. However, these bank stocks continue to struggle.

Everyone knows about the recent 'foreclosure gate' scandal. This could be one of the reasons for the weak price action in the three large major banks. However, many analysts and economists feel that this matter will get resolved clearly. However, at this time these stocks continue to remain near the low end of the charts.