Financial Winners and Losers: Citigroup

Updated from 12:14 p.m. EDT

Financial stocks were mixed Friday after several targets for bank earnings were updated by analysts, as well as a report the government is pushing to replace Citigroup's (C Quote) management team.

The Federal Deposit Insurance Corp. is pushing for a shake-up of Citigroup's top management, including CEO Vikrim Pandit, according to The Wall Street Journal.

The report said federal officials have reached out to Jerry Grundhofer, the former US Bancorp (USB Quote) CEO who recently joined Citigroup's board, to gauge his interest in the top job.

Richard Bove, analyst with Rochdale Securities, said the continued political infighting at Citigroup is very destabilizing and that the bank's management must be allowed to do its job.

"Further turmoil at the top, which always destabilizes middle management, must stop," Bove wrote in a research note. "Continuation of this reported battle can only hurt the company no matter what the outcome."

Citigroup shares slid 3.1% to close at $3.46.

Meanwhile, Bank of America (BAC Quote) had four outside directors join its board, according to The Wall Street Journal, citing unidentified sources close to the matter. The new directors include former Federal Reserve Governor Susan Bies, former Federal Deposit Insurance Corp. Chairman Donald Powell, former Compass Bancshares head D. Paul Jones, and former Bank One executive William Boardman, according to the report.

Bank of America shares finished a penny lower at $11.86. Among other bank stocks, Wells Fargo (WFC Quote) gave back 1.5% while JPMorgan Chase (JPM Quote) shares shed 2.3%.

In a separate note, Rochdale's Bove initiated coverage of BB&T (BBT Quote) with a neutral rating, saying it is "one of the best run banks in the nation but it is facing significant problems in its loan portfolios in Georgia and Florida. Also, it is possible that the company could make a large acquisition which could take a couple of years to integrate." Bove assigned a stock price target of $24. BB&T shares ended down 3.8% to $21.41.