Financial Stocks Mostly Lower; Bank of America Said In Talks to Repay Faulty Mortgage-Backed Securities

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Top Financial Stocks

JPM 0.00%

BAC -0.48%

WFC +0.21%

C +0.07%

USB +0.20%

Financial stocks are mostly lower, with the NYSE Financial Sector Index falling 0.6% while the S&P Financial 100 Index is down just 0.1%.

In company news, Bank of America ( BAC ) is down about 0.5% at $14.55 a share, holding near its best levels of the session amid reports the Federal Housing Finance Agency is seeking at least $6 billion from the bank to settle civil claims that the bank sold faulty mortgage bonds to government-backed finance companies, Bloomberg News reported, citing an unnamed person with direct knowledge of the discussions.

The FHFA has sued BAC and 17 other firms in an effort to recoup some of the losses taxpayers had to shoulder to rescue Fannie Mae and Freddie Mac during the 2008-2009 credit crisis.

JPMorgan & Chase ( JPM ) will pay $4 billion to resolve FHFA claims as part of a broader $13 billion deal reached late Friday to end investigations of its mortgage bond sales, Bloomberg said, citing another unnamed person with knowledge of those talks.

In other sector news,

(+) FRC, (+1.3%) Announces public offering of depositary shares at $25 apiece and each representing a 1/40th interest in a share of its Series E noncumulative perpetual preferred stock.

(-) FHN, (-3.0%) Cut to Sector Perform for Outperform at RBC Capital Markets, which also trimmed its price target for the stock by $2 to $11 a share.



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: BAC , JPM

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