Financial Shares Posting Small Gains; Government Lawsuit Against Wells Fargo Allowed to Proceed

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Top Financial Stocks

JPM +1.80%

BAC +0.78%

WFC -0.08%

C +0.48%

USB -0.51%

Financial stocks are mostly higher, with the NYSE Financial Sector Index advancing about 0.3% and the S&P Financial 100 Index gaining 0.3%.

In company news, Wells Fargo ( WFC ) is narrowly higher, with shares climbing 0.1% to $41.77 apiece. The bank will have to face a Justice Department suit over alleged mortgage misconduct after a federal judge late Tuesday rejected its efforts to dismiss the suit.

"For the most part, Wells Fargo's arguments are unavailing," U.S. District Judge Jesse Furman of the Southern District of New York wrote in his decision. The judge did, however, narrow the scope of the case, dismissing any claims filed before June 25, 2009.

The Justice Department sued WFC last October, alleging the bank engaged in "reckless origination and underwriting" of government-backed mortgage loans. It also accused WFC of falsely certifying "tens of thousands of those loans were eligible for [Federal Housing Administration] insurance," according to the government complaint.

In other sector news,

(+) EHTH, (+0.8%) Private online health insurance exchange partners with Intuit Inc. ( INTU ) to expand consumer enrollment in individual and family health insurance plans.

(-) NSM, (-0.1%) Prices upsized $225-mln offering of 6.5% senior notes due 2018 by its Nationstar Mortgage LLC and Nationstar Capital Corp. subsidiaries. It originally planned to offer $150 mln of the notes.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Commodities

Referenced Stocks: INTU , WFC

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