UK banks Don’t bank on it

Shares in big UK banks have risen by about 10% in the last three weeks, and many analysts expect them to rise further – not least because banks often outperform at the end of the year. But this may be wishful thinking. The rise itself is rather deceptive. Much of the recent gain is simply making up for a roughly similar fall that took place in the first three weeks of October. Then hedge funds shorted bank stocks because of worries about consumer spending and the housing market. Those worries p...