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Sector Update: Financial

By: MT Newswires
Posted: 8/30/2013 3:41:00 PM
Referenced Stocks: C

Financial stocks are lower today with the NYSE Financial Sector Index sinking 0.5% and the S&P Financial 100 Index also falling about 0.5%.

In company news, Citigroup Inc ( C ) is little changed, down less than 0.1%, and the bank company said to be considering selling half of it branches in Texas as CEO Michael Corbat refocuses more company attention on larger urban areas.

The approximately 50 branches hold around $2 billion in customer deposits and could fetch as much as $50 million, two people with direct knowledge of the plan told Bloomberg News. Most of the outlets are in rural areas in western Texas, another person said.

C's North American consumer-banking unit had 983 branches at the end of June and another 2,929 in other countries, according to bank records. The company has closed a number of U.S. branch locations in recent months and selling retail units in countries including Uruguay and Turkey.

In other sector news,

(+) RDN, Reaches agreement with Freddie Mac to cap expenses linked to 25,700 first-lien mortgage loans held by the government-affiliated housing finance company at $840 mln. The pact will cost RDN about $20 mln in Q3.

(-) IRC, Amends unsecured credit facilities totaling $360 million, up $10 mln from its prior pacts and comprised of a four-year, $180-mln revolver extendable for an extra 12 months and a five-year, $180-mln term loan.