Volume Spike Investor

A fairly broad selection of financial stocks are moving higher in premarket trading as of 8:45 on Tuesday, even though the XLF is closely tracking the market with about a 1% gain.

UBS AG (NYSE: UBS) shares were among the most active. The Justice Department may drop a legal case that would have required UBS to name names among its wealthy American clients suspected of tax evasion, according to the New York Times. Now it appears that a deal might be reached, and the case could be dropped before July 3.

The Bank of Ireland (NYSE: IRE) and Allied Irish Banks, plc (NYSE: AIB), are strong in the early going, both up more than 6%. They appear to be gaining as speculators bet tht the government will rescue Irish lenders in deals that are favorable to existing stockholders.

Other banking names showing early strength include Sallie Mae, up 3%, (NYSE: SLM), Huntington Bancshares, up 2% (Nasdaq: HBAN) and Bank of America, up more than 1% (NYSE: BAC). — Mike Tarsala