Financial Sector Update for 05/17/2016: HSBC, BBCN, WIBC, LCNB

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Financial stocks turned solidly lower this afternoon, with the NYSE Financial Sector Index sinking about 0.9% while financial companies in the S&P 500 Index losing around 0.7%.

In company news, HSBC ( HSBC ) shares were slightly higher this afternoon after the bank holding company was raised to Buy from Hold by analysts at Investec.

The upgrade follows HSBC yesterday saying it plans to redeem about $1.27 billion in preferred securities, including 20.7 million shares of its floating rate non-cumulative Series F preferred stock and 373,750 shares of its Series G floating rate non-cumulative preferred shares.

The bank yesterday disclosed plans to lay off around 840 information technology employees in the UK, the first big wave of job cuts expected to eventually pare over 8,000 shares at the company.

HSBC shares were still ahead by about 0.7% at $31.40 each, backing down from an earlier advance to $31.69 a share.

In other sector news,

(+) WIBC, BBCN Bancorp ( BBCN ) receives the last of the required regulatory approvals needed to move forward with its proposed merger with Wilshire Bancorp ( WIBC ). The deal still shareholder approvals at both companies.

(-) LC, Receives grand jury subpoena from U.S. Department of Justice, the peer-to-peer lender reveals in regulatory document last night following the company last week firing CEO after discovering $3 mln of misdated loans.

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

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This article appears in: Investing , Banking and loans
Referenced Symbols: HSBC , LCNB

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