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NEW YORK (
Morgan Stanley (MS - Get Report) was the winner among the largest U.S. banks during an abbreviated trading session on Friday, with shares rising over 2% to close at $11.82.
Financial Times reported that Morgan Stanley purchased 15 loans worth £430 million loan along Australia's Gold Coast from
Lloyds Banking Group PLC (LYG), while
Goldman Sachs purchased a £600 million portfolio of loans in New Zealand, also from Lloyds.
Goldman's shares rose 1% to close at $88.75.
The broad indexes weakened late in the session, but the
KBW Bank Index (I:BKX) rose 1% to close at 34.90, as bank stock investors shrugged off another poor showing from the Italian Treasury, as the average yield on Italy's auction of ¿8 billion in 6-month bills climbed to 6.504%, according to
Bloomberg. Meanwhile there was a slight sell-off in U.S. 10-year paper, with the market yield up to 1.96% at 1PM.
Meanwhile, the average yield on 2-year Italian paper was 7.82%, which exceeded the yield on Italy's 10-year bonds by roughly 50 basis points, in a classic sign of a distressed market for sovereign debt.
Large banks seeing 2% gains on Friday included
People's United Financial (PBCT - Get Report), which closed at %11.82, and
Wells Fargo (WFC - Get Report), closing at $11.83.
Wells Fargo is among the large mortgage servicers that could get a break from the Federal Housing Administration, as part of the broad settlement between federal regulators and state attorneys general. The
American Banker reported that the FHA may release the servicers from liability related to their loss mitigation efforts on FHA-insured loans.
Major U.S. banks seeing shares rise 1% on Friday included
Bank of America (BAC - Get Report), closing at $5.17;
BB&T (BBT - Get Report), at $21.18;
Citigroup (C - Get Report), at $23.68; and
U.S. Bancorp (USB - Get Report), which closed at $24.03.