Sector Update: Financial


Financial stocks are little changed in afternoon trade, with the NYSE Financial Sector Index down about 0.1% while the S&P Financial 100 Index is up less than 0.1%.

In company news, American depository shares of Credit Suisse Group AG ( CS ) are down nearly 7% at $28.78 each following reports Swiss politicians are pushing for stricter bank capital rules.

Swiss politicians in recent weeks have proposed rules that could force the two banks to make far fewer loans and investments in relation to the capital they keep on hand, according to the Wall Street Journal. One proposal, supported by left-leaning Social Democrats, would force Swiss banks to maintain minimum leverage ratios of 10% - meaning they would have to hold 10 Swiss francs for every 100 francs they hold in assets.

The right-wing People's Party would require a 6% minimum while current rules call on banks to boost their leverage ratios above 4% within the next five years. CS recently reported its ratio had reached 3.5%, the newspaper said.

The proposals also are taking a big bite out of ADS of UBS AG ( UBS ), last down 5.75% at $18.11 each. UBS has a leverage ratio of around 3.2%.

In other sector news,

(+) RLGY, (+8.5%) Earns $1.03 per share in Q3, ex items, beating expectations by $0.16. Revenue rose 21.2% year over year to $1.55 bln, exceeding consensus view by about $70 mln.

(-) CME, (-0.9%) Q3 EPS of $0.75 per share, ex items, beats by $0.02. Revenue rises 4.6% over the same quarter last year to $714.6 mln, topping the analyst consensus by $1.03 mln.

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

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

Referenced Stocks: CS , UBS

MT Newswires

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