Top Financial Stocks
Financial stocks are keeping pace with the steep downdraft for
stocks today with the NYSE Financial Sector Index falling 2.1% and
the S&P Financial 100 Index declining 1.4%.
In company news, Ebix Inc. (
) is down near 40% to around $11.90 a share, earlier tumbling to a
new 52-week low of $9.85 after Goldman Sachs (
) scrapped plans to buy the insurance-software firm after a U.S.
Attorney's office opened an investigation into allegations of
intentional misconduct by EBIX.
EBIX and a GS affiliate were slated to merge in a $-mln
transaction announced May 1. But GS said it decided to terminate
the deal after the U.S. Attorney for the Northern District of
Georgia told EBIX late last week it had opened an investigation
into allegations of intentional misconduct contained in shareholder
class action lawsuits against the Company's directors and officers,
the media and other sources.
Both the Securities and Exchange Commission and the IRS
reportedly have also taken an interest in the company -
specifically, in EBIX's foreign operations in countries like India
where it pays lower tax rates than in the United States. Ebix has
vehemently denied any wrongdoing.
In other sector news,
(+) ALL, (+0.4%) Estimates its pre-tax catastrophe loss during
May totaled about $323 mln, with three severe weather-related
evenut accounting for over 90% of the estimated loss. The insurer
previously reported a $216-mln pre-tax loss in April, bringing its
Q2 loss so far of around $539 mln.
(-) AGNC, (-3.9%, has hit fresh year lows) Declares cash
dividend on its 8% Series A cumulative redeemable preferred stock
of $0.50 per share, payable July 15 for shareholders of record on
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