Shares of big U.S. banks rise as Senate approves tax overhaul

[December 04, 2017]  (Reuters) - Shares of the biggest U.S. banks were higher after the Senate approved a tax overhaul bill on Saturday, which will provide significant tax cuts for businesses.

A Bank of America logo is seen in New York City, U.S. January 10, 2017. REUTERS/Stephanie Keith/File Photo

JPMorgan Chase <JPM.N> shares were up 2.1 percent on Monday and on track for a fresh record, while Bank of America's <BAC.N> stock climbed 2.5 percent and was set to reach the highest level since October 2008.

Morgan Stanley <MS.N>, Citigroup <C.N> and Goldman Sachs <GS.N> also rose about 2 percent each.

U.S. stocks have rallied for months on hopes that Washington would provide significant tax cuts for corporations and spur growth.

Talks between the Senate and the House are slated to begin next week to reconcile their respective bills. The House has already approved its own version of the legislation.

Mid-cap and regional banks were also buoyed by the developments on Saturday — Regions Financial <RF.N> was up 2.10 percent, SunTrust Banks <STI.N> 2.15 percent, Bank of New York Mellon <BK.N> 1.4 percent and M&T Bank Corp <MTB.N> up 2.1 percent.

The tax overhaul is seen by President Donald Trump and Republicans as crucial to their prospects at mid-term elections in November 2018, when they will have to defend their majorities in Congress.

(Reporting By Aparajita Saxena in Bengaluru; Editing by Shounak Dasgupta)

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