AP

Shares of French bank stocks are soaring on the news that central banks around the world are providing liquidity that these same banks just two days ago they didnt need.

BNP Paribas is up 12% and shares of Societe Generale and Credit Agricole shares are up more than 6%.

Other European bank shares are higher, too, with Deutsche Bank up 7%, Barclays up 5% and Credit Suisse up 5%.

Poor old UBS and its rogue trader are still down 9%, however.

This should also lift US bank shares. In early trading, Bank of America and Goldman Sachs are each up 1.5%, J.P. Morgan and Citi are each up 2%, and Morgan Stanley is up 3%.

It remains to be seen how long this effect will last. This helps immediate liquidity issues, but does not solve the underlying problems that have led to the liquidity issues in the first place. Weve seen this movie before.

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