Sector Update: Financial Shares Sink as Investors Believe Bernanke's Testimony Signals Reduced Bond Buying
Top Financial Shares:
Financial shares are mixed in today's pre-market session as investors interpret Bernanke's comments yesterday to indicate that the $85-billion-per-month bond-buying program could be scaled back later this year.
British banks are at the foreground of financial stocks news this morning. The BBC reports that the Prudential Regulation Authority in the UK has said the country's lenders need to raise $42 billion more in capital to cover their risks under Basel III.
Royal Bank of Scotland ( RBS ) was the regulator's main cause of concern, accounting for $21 billion of the total, the report said. Lloyds Banking Group ( LYG ) accounted for $13 billion and Barclays $4.6 billion, the report added. RBS is down 2% pre-market; LYG is up 1%.
In other news, The Carlyle Group ( CG ) has agreed to by Italy's Marelli Motori, a manufacturer of industrial generators and electric motors, for 212 million euros ($280 million.) The transaction is expected to close in August 2013.
Capital for this investment will come from Carlyle Europe Partners III, a 5.3 billion euro fund that makes mid-and large-cap investments. Marelli's revenue grew to 149.1 million euros in 2012, an increase of 12.5% over the previous year with EBITDA of 22.2 million euros. CG is up 0.4% in pre-market.
Finally, General Growth Properties ( GGP ) has filed a shelf registration with the SEC for the sale of 440 million shares by current holders. Shares closed at $20.56. GGP is flat in pre-market.