Sector Update: Financial
Financial stocks were mostly lower today with the NYSE Financial Sector Index sinking about 0.5% and the S&P Financial 100 Index also falling about 0.5%.
In company news, American depository shares of BBVA Banco Franc ( BFR ) slid Monday after the U.S. Supreme Court rejected Argentina's appeal of efforts by hedge fund investors to collect on the country's decade-old defaulted bonds.
The U.S. high court today effectively backed the hedge funds' push for full payment of around $1.3 billion on the bonds. The decision comes despite the funds refusing to take part in 2005 and 2010 restructuring talks after purchased the bonds at steep discounts following the 2001 default.
The Merval Buenos Aires index of Argentine stock tumbled 6.6% today after the decision was announced.
BFR ADS were down 9.7% at $9.79 each, with the Argentine bank earlier falling to a session low of $9.66 per ADS. The stock has a 52-week range of $3.53 to $11.68, jumping nearly 146% in value over the past 12 months.
In other sector news,
(+) NCT, Announces plans for a spinoff through a share distribution of its New Senior Investment Group into a new publicly traded real estate investment trust targeting senior housing-related investments.
(-) BAC, Financial Industry Regulatory Authority announces $8 million fine and orders $28.4 million in restitution to be paid by the bank's Merrill Lynch unit for failing to waive mutual fund sales charges for charities and retirement accounts.
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