U.S. banking stocks jump after Reuters accounting scoop

U.S. banking stocks, including Bank of America and Wells Fargo, rose as much as 10 percent after Reuters reported on March 4 that the influential House Financial Services was planning to examine mark-to-market accounting rules. Reuters was also alone in reporting that the panel was planning on calling the Securities and Exchange Commission’s chief accountant and the head of the accounting rulemaker, the Financial Accounting Standards Board, to testify. CNBC read out Reuters headlines and story and said the Reuters report was responsible for paring back losses among financial firms. Reuters financial clients called our reporter asking for more information. After Reuters issued the report at 14:59, shares of Bank of America rose 5 percent and Wells Fargo rose 10 percent. The Reuters report was unmatched by Dow Jones and Bloomberg. More than 24 hours later, the Congressional subcommittee announced plans to hold the hearing March 12.