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Sector Update: Financial Stocks Slipping Today; Citigroup Said Keeping Clients Out of Hedge Funds After Mortgage Securities Settlement

Top Financial Stocks

JPM +0.12%

BAC -0.09%

WFC -0.12%

C -0.09%

USB -0.31%

Financial stocks were moderately lower with the NYSE Financial Sector Index slipping 0.2% and the S&P Financial 100 Index falling 0.3%.

In company news, Citigroup Inc. ( C ) was down slightly ahead of Friday's closing bell and the bank reportedly telling hedge funds it no longer can steer its individual clients into investing in those funds.

According to the letter obtained by the Wall Street Journal, C was telling hedge funds it was working with regulators to resolve the issue, although it is still allowed to sell private investments to large institutions.

Earlier this month, C reached a $285 million fraud settlement with the SEC over a complaint involving a 2007 sale of mortgage-linked securities debt that resulted in over $700 million of investor losses.

C shares were down 0.1% at $51.04 each in late trade, earlier sinking to a session low of $50.76 a share. The stock has traded within a 52-week range of $45.18 to $55.28 a share, rising about 2.3% over the past 12 months.

In other sector news,

(+) AWH, Acquires the Hong Kong and Singapore operations of Royal & Sun Alliance Insurance for around $215 mln in cash. The insurer expects the deal will immediately add to its per-share earnings.

(-) RY, Adjusted Q3 EPS of C$1.62 per share tops estimates by C$0.06 per share. Revenue grows 25.2% year over year to C$8.98 bln, beating consensus by around $770 mln. Raises dividend by 6% from prior quarter to C$0.75 per share.

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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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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