Thursday's Financial Winners & Losers

Updated from 1:53 p.m. EDT

Financial stocks largely foundered in negative territory Thursday as numerous names were crushed by various negative news.

Tax preparer H&R Block (HRB Quote) traded heavily, sliding 3.3% to $22.04 after swinging to a GAAP-based loss due to its struggling subprime mortgage-lending unit, which the firm agreed to sell in April.

Excluding the heavy impact of that business, the firm made just $1.81 a share -- up 18 cents from last year but 7 cents below the consensus estimate from Thomson Financial. Full-year earnings widely missed, coming in at 99 cents a share vs. the expected $1.17. Looking ahead, fiscal 2008 income should miss by at least 2 cents.

Nasdaq Stock Market (NDAQ Quote) also suffered on news that the London Stock Exchange is in talks to buy out Borsa Italiana. Should a merger result, this could complicate any additional attempt by the Nasdaq to take out the LSE. The exchange failed in a hostile bid for the LSE earlier this year. Shares slid 1%, or 31 cents, to $30.25.

Chicago's PrivateBancorp (PVTB Quote) fell 9.6% to $30.03 on soft second-quarter guidance, including an estimate that substantial new hires at its forming Kansas City location will reduce per-share earnings by 2 cents. Lender Dollar Financial (DLLR Quote), of Berwy, Pa., said it will offer $150 million in senior convertible bonds to institutional buyers, with an initial-purchasers' option for another $22.5 million worth to cover any overallotments. Shares were off 5.9% to $29.28.