Financial shares jump on bank aid, Wells Fargo

NEW YORK (Reuters) - Shares of major U.S. banks soared after the market open on Wednesday, boosted by optimism that President Barack Obama''s administration was moving quickly to stabilize the banking sector and as lawmakers get ready to vote on a stimulus package to boost the recession-hit economy.

Good news also came from Wells Fargo & Co (WFC.N), as it maintained its dividend and said it did not need more taxpayer funds to absorb the troubled lender Wachovia Corp despite reporting a surprise quarterly loss.

The Financial Select Sector SPDR XLF.P gained 7.2 percent; Bank of America (BAC.N) shares rose 12.5 percent to $7.31; Citigroup (C.N) gained 14.7 percent to $4.07; JPMorgan Chase (JPM.N) added 6.8 percent to $26.77 and Wells Fargo (WFC.N) jumped 16.7 percent to $18.89.

(Reporting by Rodrigo Campos, Editing by Chizu Nomiyama)