Financial stocks are ending near their session lows today with the NYSE Financial Sector Index retreating 1.1% and the S&P Financial 100 Index now down 1.4%.
In company news, The Royal Bank of Scotland Group plc ( RBS ) is down 4% at $10.62 in late U.S. trade, expanding on a 2.9% decline in London earlier today after agreeing to pay $100 million to federal and state regulators to settle allegations it violated U.S. sanctions against financial dealings with Iran, Sudan and other countries.
The Treasury department today said the alleged violations occurred between 2005 to 2009 after the bank removed references to U.S.-sanctioned locations or individuals from payment messages sent to U.S. banks. The Federal Reserve and state banking regulators in New York also participated in the probe.
RBS earlier today also confirmed a key executive is leaving to join a rival bank, with Group Finance Director Nathan Bostock soon quitting to join Banco Santander SA ( SAN ), just 10 weeks after coming to the firm.
In other sector news,
(+) NRF, Announces plans to spin off its NorthStar Asset Management business into a separate company that will trade on the New York Stock Exchange. The new firm will manage NRF and its non-traded REIT business while owning its broker-dealer platform.
(-) HRB, Reports Q2 net loss of $0.42 per share, ex items, $0.05 worse than expectations. Revenue falls ell 2.4% year over year to $134 mln, missing Capital IQ consensus by $4.56 mln.
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