Citigroup (NYSE:C), Bank of America (NYSE:BAC), Goldman Sachs (NYSE:GS), J.P. Morgan (NYSE:JPM), Morgan Stanley (NTSE:MS) All Up on Senate Banking Vote

With almost all the major banks like Citigroup (NYSE:C), Bank of America (NYSE:BAC), Goldman Sachs (NYSE:GS), J.P. Morgan (NYSE:JPM) and Morgan Stanley (NTSE:MS) having their share prices rise in anticipation of the test vote from the Senate, which would effectively close debate on the bill, it shows how the market is viewing the issue.

The only major bank not increasing in share price for the day is Wells Fargo (NYSE:WFC), which was down 1.70 percent as of 2:30 p.m. EST.

More important at this time for the market is the fact that there will finally be some clarity as to what the new regulations will be, and how they will affect the banks performance going forward.

This has been a cloud hanging over the entire sector, especially with the giant financial institutions, which has obviously kept the share prices of the banks down.

That doesn’t necessarily mean it will be a positive for the banking industry in America for the long term, but it does reveal that uncertainty has had a short-term, detrimental impact on the shares of the banks.

Once banking regulations are agreed upon and put in place, the market will be able to digest the potential consequences and make decisions based on that.

It’s the inability to factor in the regulatory changes that have been weighing on the markets.

Uncertainty about the future is what this is about, and clarity will give investors a better picture of what that future will hold and how it’ll affect the revenue and earnings of the banks.