Bank of America: Financial Winners & Losers

(Bank of America and other stock prices brought current in this update.)

NEW YORK (TheStreet) -- Bank of America (BAC) was among the weak performers of the financial sector Monday after an analyst cut his price target and earnings forecasts for the bank, citing "serious challenges" from both the market and U.S. government.

Bank of America shares slid 3.2% to $14.86 after Rochdale Securities analyst Dick Bove on Saturday cut his price target to $22.80 from $27.50, saying that Bank of America is "currently facing serious challenges from multiple sources both governmental and market driven."

"The government issues touch upon every aspect of the business," Bove wrote in a research note. "There is a demand for new and tougher capital and liquidity standards. These will lower the bank's profitability and return on equity."

Bove cut his 2010 full-year earnings estimate for Bank of America to 91 cents a share from 93 cents a share, his 2011 target to $1.95 a share from $1.99 a share, and his 2012 estimate to $2.99 a share from $3.03 a share.

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Bove maintained his buy rating on Bank of America's stock, arguing that that "the economy will continue to grow and this means lower loan loss provisions." Bove also said that Bank of America's "price to book continues to be quite low particularly given the expected growth in book value."

Most other U.S. bank stocks were losing ground Monday. Citigroup (C) fell 3.7% to $3.65, Morgan Stanley (MS) was down 2.4% to $25.38, JPMorgan Chase (JPM) slipped 1.9% to $36.89, and Wells Fargo (WFC) lost 1.3% to $27.43.

Meanwhile, Goldman Sachs (GS) lost ground after the Financial Crisis Inquiry Commission said it has subpoenaed the bank for failing to comply with document requests from the panel.

"In seeking documents and testimony from public agencies and companies, the Commission has made it clear that it is committed to using its subpoena power if there is a lack of, or delay in, compliance," the FCIC said in a release. "Failure to comply with a Commission request is viewed with the utmost seriousness, as the Commission will not be deterred from getting desired information."

Shares of Goldman Sachs were off 2.6% to $138.51.

Elsewhere, Dow Jones Newswires reports that Prudential PLC (PLC) Chairman Harvey McGrath said Monday that the U.K. insurer's board of directors has "total confidence" in CEO Tidjane Thiam following the failed bid to acquire American International Group's (AIG) AIA Asian unit.

The $35.5 billion deal was scrapped after Prudential PLC attempted to negotiate for a lower price with AIG. McGrath called the deal collapse "bitterly" disappointing. but added that Prudential PLC's focus on Asia remains unchanged.

Prudential PLC shares trading in New York were down 3.7% to $15.33, while AIG fell 2.7% to $33.83.

-- Written by Robert Holmes in Boston.

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