Sector Update: Regional Bank Stocks Give Back Yesterday's Gains on Merger Delay News, CDO Concerns

By Staff,

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Regional bank stocks have given back all of yesterday's 1% advance with the S&P 500 Regional Banks (SP500-40101015) under pressure on news that the Hudson City Bancorp ( HCBK ) and M&T Bank ( MTB ) merger will be delayed due to compliance problems identified at M&T Bank. The merger is now expected to close in the second half of 2014.

Also likely adding pressure to the group is news from Zions Bancorp ( ZION ), down near 2% after the company reported after yesterday's close that it will be forced to take a $387 million after-tax charge for Q4 2013 to divest its portfolio of collateralized debt obligations (CDOs).

Among banks getting hit the hardest today are Firstmerit Corp ( FMER ) down 2.2%, City Holding Company ( CHCO ) down 2.1%, KeyCorp (KEY) down 1.5%, Huntington Bankcshares (HBAN) down 1.2%, and BB&T Corporation (BBT) down 1.2%.

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

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

This article appears in: Investing Commodities
Referenced Stocks: CHCO , FMER , HCBK , MTB , ZION

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