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Friday's Bank Stocks: Markets close higher on reports of a smaller Deutsche fine


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Friday's Bank Stocks: Markets close higher on reports of a smaller Deutsche fine

Markets closed higher Friday Sept. 30 after a surfaced claiming thatDeutsche Bank AG is closingin on a $5.4 billion settlement with the U.S. Department of Justice overmis-selling residential mortgage-backed securities.

If confirmed, the revised settlement would be asubstantially smaller amount than the $14billion preliminary bid two weeks ago. The news slightly alleviatedconcerns over a possible Deutsche failure that could force the to help.

As markets continue to tread water in the wake of nonactionin last week's FOMC meeting, investors are getting jumpy on risks like theDeutsche collapse, said Doug Roberts, founder and chief investment strategistfor

"What you really have to look at are things outside of therange of expectations," said Roberts. "That's what is going to movethe market. And you saw that initially with Deutsche. It's the new black swan."

The Dow Jones Industrial Average closed up 0.91% to18,308.15, the S&P 500 climbed 0.80% to 2,168.27, and the Nasdaq compositeindex increased 0.81% to 5,312.00.

Roberts also attributed the market gains to the morning'sreported increase in the ISM's PMI index, a measure of business activity thatindicates an expansionary economy if the reading is over 50. September'sreading was 54.2 — 2.7 points up from August.

Bank stocks saw larger gains. The SNL U.S. Bank Index rose1.58% to 413.68. JPMorgan Chase& Co. rose 1.43% to $66.59, Citigroup Inc. popped 3.12% to $47.23, and closed up3.23% to $15.65. XenithBankshares Inc. increased 5.96% to close at $2.31 while increased 3.37% to$10.11.

Wells Fargo& Co. slipped 0.20% to $44.28 as the company continues to dodamage controlregarding their cross-selling scandal. Paragon Commercial Corp. lost 2.34% to close at $36.28.

In thrifts, NewYork Community Bancorp Inc. rose 0.92% to close at $14.23. The SNLU.S. Thrift Index added 0.91% to 827.17.

Market pricesand index values are current as of the time of publication and are subject tochange.