Top Financial Stocks
Financial stocks are broadly lower, with the NYSE Financial
Sector Index sinking about 1.2% and the S&P Financial 100 Index
retreating about 1.2%.
In company news, The First Marblehead Corporation (
) is down a split-adjusted 5.6% this afternoon at $7.53 a share,
down 45 cents from its $7.98 opening price after completing a
10-for-1 reverse stock split just before the start of trading.
The reverse addresses a compliance issue raised by the New York
Stock Exchange in late September after FMD shares had fallen under
the $1 minimum average price requirement for an ongoing NYSE
listing for more than 30 days.
The number of FMD shares were reduced by a factor of 10, with
shareholders receiving one share of "new" FMD stock for every 10
shares they previously held. The market capitalization of the
company was unchanged at around $850 million following the reverse
FMD shares plunged beginning in mid-August after the specialty
lender said it expects the Internal Revenue Service will disallow
some of the tax refunds the company previously received as well as
counting trust residuals from its March 2099 sale of an investment
vehicle that owned all 15 of the National Collegiate Student Loan
Trusts the company had facilitated up to that time as taxable
income. FMD estimated the adjustment could cost it about $300
million plus interest.
FMD is contesting the government's Notice of Proposed
In other sector news,
(+) KINS, (+2.5%) Announces plans for a public offering of 2.5
million shares of its common stock at a price yet to be determined.
Proceeds are slated to fund growth of its insurance subsidiary,
repaying debt as well as funding potential acquisitions.
(-) TAXI, (-8.7%) Launches underwritten offering of 2.9 million
shares of its common stock. Net proceeds will be used to make loans
and other investments with portfolio companies and other general
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