NEW YORK (
) -- Financial stocks declined after
Bank of America
it was revealed that the
objected to the bank's
Bank of America stock fell by 36 cents to $13.52 in the afternoon. Not all were disappointed with Bank of America's announcement. A
analyst said that the bank was an
and would likely exceed the $2.00 annual run-rate for operating
earnings per share within two years.
Overall, financial stocks were down for the first part if the trading day.
The Financial Select Sector SPDR
was down 15 cents at $16.10.
shares were also down as CEO Lloyd Blankfein took the stand at the trial of
hedge fund manager Raj Rajaratnam. Blankfein is supposed to testify about the origin of the tip that former Goldman board member
to Rajaratnam. Goldman shares dropped 89 cents at $159.90.
American International Group
shares were also down 38 cents at $36.57 on news that the insurer was bidding $15.7 billion for the Federal Reserve's portfolio of mortgage-backed securities. AIG's CEO Robert Benmosche was interviewed on
Wednesday and said there were other bidders for the MBS portfolio.
The winner of the day was
Discover Financial Services
, which was up $1.02 at $23.27 on reported a first quarter profit of $459 million, or 84 cents a share. The profit compared to a loss of $122 million, or 22 cents a share, in the same quarter of 2010. The company also raised its quarterly dividend from two cents to six cents.
--Written by Maria Woehr in New York.
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