Financial stocks are mostly higher, with the NYSE Financial
Sector Index advancing about 0.3% and the S&P Financial 100
Index gaining 0.3%.
In company news, Wells Fargo (
) is narrowly higher, with shares climbing 0.1% to $41.77 apiece.
The bank will have to face a Justice Department suit over alleged
mortgage misconduct after a federal judge late Tuesday rejected its
efforts to dismiss the suit.
"For the most part, Wells Fargo's arguments are unavailing,"
U.S. District Judge Jesse Furman of the Southern District of New
York wrote in his decision. The judge did, however, narrow the
scope of the case, dismissing any claims filed before June 25,
The Justice Department sued WFC last October, alleging the bank
engaged in "reckless origination and underwriting" of
government-backed mortgage loans. It also accused WFC of falsely
certifying "tens of thousands of those loans were eligible for
[Federal Housing Administration] insurance," according to the
In other sector news,
(+) EHTH, (+0.8%) Private online health insurance exchange
partners with Intuit Inc. (
) to expand consumer enrollment in individual and family health
(-) NSM, (-0.1%) Prices upsized $225-mln offering of 6.5% senior
notes due 2018 by its Nationstar Mortgage LLC and Nationstar
Capital Corp. subsidiaries. It originally planned to offer $150 mln
of the notes.
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