What a difference a day makes...

Early this morning I was going to write about the way BMO was being punished for Friday's announcement of their acquisition of Marshall & Ilsley for $4.1 Billion.  BMO shares were $62.05 on Thursday and $56.60 on Monday...a drop of 8.8%.  Apply that to the BMO market cap and do the math.  It's a really big number.

I held off writing about BMO because TD Bank, not to be outdone, announced that they were buying the old Chrysler Credit, now known as Chrysler Financial for $6.3 Billion.  I figured I'd wait and put it all in one long, sad story as I prefer not to rehash bad news.  My guess was that the market would similarly dislike the TD deal.

Not so fast!  Apparently TD walks on water and the markets responded by bidding TD up $2.64 to $73.16 in one day.  If that wasn't enough the market spread the love to the all the big banks.  My BMO shares jumped $1.18 and even my long suffering shares of RBC came up $1.04.  All-in-all, I made some real money on my bank shares on Tuesday, December 21.

The TSX reached a new twenty-eight month high of 13,365.  US, Europe and Asia were all up and my stuff reached a level I haven't seen since the summer of '07.

Yes, what a difference a day makes!