Financial Winners & Losers: Bank of New York

Financial stocks dropped Friday as higher oil prices and a disappointing report on consumer spending and income weighed on the broader market.

The NYSE Financial Sector Index fell 0.7% and the Dow Jones Industrial Average fell 1% in morning trading.

Bank of New York Mellon (BK Quote) slumped 2.6% to $34.48. The company said Thursday that a data breach first disclosed in May involves information from 12 million individuals, about 8 million more than it initially reported.

Bond insurers gave up much of the previous day's gains , with MBIA (MBI Quote) declining more than 6% to $15.16, and Ambac (ABK Quote) down 4.5% to $7.09.

Government-supported mortgage giants Fannie Mae (FNM Quote) and Freddie Mac (FRE Quote) reversed course after a week of dramatic gains, dropping 12.2% to $6.98 and 13.1% to $4.59, respectively.

Indications that the credit crunch has spread to the shores of Puerto Rico also affected some stocks. Popular (BPOP Quote) said Friday that it will take a $450 million loss to exit its U.S. mortgage business. Popular is selling $1.17 billion worth of mortgage and servicing assets to Goldman Sachs (GS Quote) for a price of $700 million.

Popular shares rallied more than 20% following the news, but were recently trading up 11.6% at $8.07. Goldman rose to $162.86.

The Puerto Rico arm of Spanish banking giant Banco Santander (STD Quote) reported a management shake-up and said it would halt its dividend on common shares, citing "continuing challenging general economic conditions in Puerto Rico and the global capital markets." Santander shares dropped 14 cents to $16.99.