This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Financial Winners & Losers: Lehman

Financial stocks tumbled Monday, as Lehman Brothers (LEH) said it expects a big second-quarter loss and announced plans to raise $6 billion through common and preferred stocks offerings.

Lehman shares plummeted 8.7% to $29.48 after announcing the news, which further dilutes the value of the stock to existing shareholders. All last week the investment bank fought off rumors that it would suffer higher losses.

The NYSE Financial Sector Index declined 122.68 to 6,882.50.

Major bank stocks were casualties as well. Washington Mutual (WM) shares plunged 17% after a UBS analyst cut his price target and estimates after surmising that the bank would have much higher losses than originally anticipated. WaMu beat Friday's all-time low of $7.12 by trading down to $6.25.

Citigroup (C) slid 46 cents to $19.60, Bank of America (BAC) gave back 2.9% to $29.61 and Wachovia (WB) fell 6.2% to $18.89. Wachovia also announced that its bank veteran Randy Johnson would be retiring.

Standard & Poor's on late Friday cut XL Capital Assurance's (XL) rating by three notches, sending shares down 1.2% to $31.93. S&P said in a statement the company's potential loss tied to mortgage-backed securities "is higher than previous estimates." Fellow insurers traded down in sympathy. Ambac (ABK) sunk 10.2% to $2.11 and MBIA (MBI) dove 10.1% to $4.89.

Among the day's winners was Hilb Rogal and Hobbs (HRH). The insurance and risk management company's stock skyrocketed $12.93, or 41.9%, to $43.82 after it was acquired by insurance broker Willis Group Holdings (WSH) for $2.1 billion in cash and stock.

CIT Group (CIT) shares also jumped up as much as 15% after Goldman Sachs (GS) said it would extend up to $3 billion in credit. CIT has been raising capital on its own, but analysts contended it was not enough. Shares closed 3.2% higher to $9.48.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,195.42 +221.11 1.30%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,566.1380 +16.9120 0.37%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs