Obama Mortgage Plan Is Dead on Arrival: Analysts
"While investors had been expecting some good news in the form of a mortgage settlement and the ability to put the issue in the past, this announcement suggests that investigations into banks' practices related to securitizing residential mortgages is unlikely to end any time soon, " KBW analysts wrote.
The SPDR Select Sector Financials ETF was down 0.6% Wednesday morning. Bank of America (BAC - Get Report), JPMorgan Chase (JPM - Get Report), Wells Fargo (WFC - Get Report) and Citigroup (C - Get Report), who are engaged in mortgage settlement negotiations, all saw their shares dip by more than 1% in early trading.
--Written by Shanthi Bharatwaj in New York
>To contact the writer of this article, click here: Shanthi Bharatwaj.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts