Goldman: Financial Winners and Losers

(Updated with MasterCard earnings, stock price movements.)

NEW YORK (TheStreet) -- Goldman Sachs (GS Quote) was among the losers of the financial sector Tuesday despite an analyst's report that said the firm was still a winner when it comes to M&A activity.

Goldman Sachs "has hit a major homerun in the merger deals being announced in the past two days," wrote Dick Bove, analyst with Rochdale Securities, referring to Berkshire Hathaway's (BRK.A Quote) acquisition of Burlington Northern (BNI Quote) and Stanley Works' (SWK Quote) buyout of Black & Decker (BDK Quote). Goldman served as an advisor on both deals.

"Fees from these deals will not be recorded until closing but they are expected to be substantial," Bove added. "The stock continues to be quite attractive."

Despite this, Goldman Sachs was lately down 15 cents, or 0.1%, to $170.53.

Overseas, Lloyds Banking Group (LYG Quote) announced a record share issue while rival Royal Bank of Scotland (RBS Quote) outlined plans to sell assets in order to satisfy European Union regulators. Both will also receive more aid from the government.

Lloyds said it will not participate in the British government's Asset Protection Scheme, instead choosing to raise 21 billion pounds ($34 billion) through a share issue. The bank will also sell some assets.

RBS is set to participate in the Asset Protection Scheme under revised terms. The bank will also be forced to sell of multiple assets.

Shares of Lloyds were rising 4.4% in the U.S. to $5.68, while RBS was slumping by 5.5% to $11.95.

Meanwhile, Swiss bank UBS (UBS Quote) swung to a loss in the third quarter, hit by three substantial charges and client withdrawals from its private bank.

UBS reported a net loss of 564 million Swiss francs ($552.9 million), pressured by a credit charge of 1.436 billion francs due mostly to the tightening of its credit spreads, a net loss of 409 million francs on the UBS Pactual sale, and another 305 million francs on the conversion of convertible notes issued to the Swiss government.

UBS continued to see clients pull money during the quarter, as net new money outflows totaled 36.7 billion francs. Lately, UBS shares were falling by 73 cents, or 4.3%, to $16.05 in trading on the New York Stock Exchange.

Most other bank stocks traded lower Tuesday. Citigroup (C Quote) fell by 2.3% to $3.90, Bank of America (BAC Quote) lost 1% to $14.48, Morgan Stanley (MS Quote) slid 0.3% to $31.89, Wells Fargo (WFC Quote) gave back 0.5% to $27.47 and JPMorgan Chase (JPM Quote) was down 0.3% to $42.46.

In other earnings news, MasterCard (MA Quote) reported a third-quarter profit of $456 million, or $3.48 a share, widely exceeding Wall Street's consensus estimate. Revenue rose 2% in the third quarter to $1.4 billion, also surpassing analysts' expectations.

However, MasterCard shares fell by 3.1% to $215.78 after the company said it anticipates that marketing expenses will increase 20% in the fourth quarter.

-- Written by Robert Holmes in New York.

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