This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Bank of New York Mellon: Financial Winner

Standard Chartered said that it "ceased all new business with Iranian customers in any currency over five years ago," and that because "resolution of such matters normally proceeds through a co-ordinated approach" by the regulatory agencies, it was "therefore surprised to receive the order from the DFS."

The bank was ordered to appear on August 15 before New York Superintendent of Financial Services Benjamin Lawsky to "demonstrate why SCB's license to operate in the State of New York should not be revoked," and Standard Chartered said it would "discuss these matters with the DFS and to contest their position."

Trading for shares of Knight Capital Group (KCG) settled down after several days of extreme volatility, with the shares pulling back by a penny to close at $3.06, after the Jersey City, N.J., market maker and facilitator of electronic transactions announced on Monday that a group of investors -- including Jefferies Group (JEF), Blackstone (BX), Getco, Stephens, Stifel Financial (SF) and TD Ameritrade (AMTD) -- had agreed to recapitalize the company by purchasing $400 million in preferred shares, "convertible into approximately 267 million shares of common stock of the Company," at a strike price of $1.50.

The recapitalization is likely to result in the investor group taking control of 70% of Knight Capital Group's shares.

KBW analyst Niamh Alexander late on Monday downgraded Knight Capital to an "Underperform" rating from a "Market Perform" rating, while lowering her price target for the shares to $2.50 from $4.00, while estimating a revised tangible book value of $3.44 per share.

Alexander said the lower price target was based on "75% of the revised estimated [tangible book value]," with a "wider discount to TBV than historical multiples to reflect the higher risk profile of the earnings now after two consecutive months of outsized trading losses, as well as the liquidity, dilution and risk of shareholder lawsuits." The analyst now estimates that Knight Capital Group will earn 29 cents a share in 2013, "down from $1.35, primarily on higher share count and assuming some minor loss of business and higher expenses resulting from the higher risk profile of the company."

KBW estimates that Knight Capital will show a net loss of $3.14 for the third quarter, "assuming two months of additional interest expense and estimating market-making revenue of negative $300 million, taking into consideration the 62 days of trading outside of the $440 million loss in the quarter."

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,001.22 -38.27 -0.22%
S&P 500 1,988.40 -3.97 -0.20%
NASDAQ 4,538.5510 +6.4470 0.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs