Citigroup: Financial Winners and Losers

Citgroup and other big banks are down after Moody's cuts outlook on some of the nation's biggest banks.
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NEW YORK (

TheStreet

) --

Citigroup

(C) - Get Report

stock shed 1.9% to $4.08 on Wednesday after

Moody's Investor Services

cut its outlook on some of the nation's biggest banks on concerns that Dodd-Frank regulation will result in lower government support for banks.

The ratings firm affirmed its long- and short-term ratings but

cut the outlook

on

Bank of America

(BAC) - Get Report

,

Wells Fargo

(WFC) - Get Report

and Citigroup to negative from stable. Moody's estimates that these banks' deposit and debt ratings are inflated by 3 to 5 notches, because of implied government support. But the new regulation may not be pro-banks.

The stock of Bank of America shed 1.3%, or 18 cents, to end the session at $14.01. Wells Fargo was lower by 1.1%, or 32 cents, at $28.07 at the end of trading hours on Wednesday.

Moody's also placed ratings of 10 regional banks under review for similar reasons, including

BB&T

(BBT) - Get Report

, which shed 2% to $25.56,

Fifth Third

(FITB) - Get Report

, down 2.9% to $12.76, and

KeyCorp

(KEY) - Get Report

, which inched up higher by 0.5% at $8.46.

More on Big Banks Here Come the Reserves!

Trading was quiet in

Goldman Sachs

(GS) - Get Report

which ended flat, while

Morgan Stanley

(MS) - Get Report

ended marginally positive.

Hudson City Bancorp

(HCBK)

was a major gainer among the regional banks earlier in the trading session, rising 2.2% to $12.47 before cooling off to $12.43. The bank announced results last week and beat estimates.

Private Bancorp

(PVTB)

jumped 4.2% to $12.60 after it reported a narrower-than-expected loss in the second quarter.

The stock of

Visa

(V) - Get Report

is up 1.4% in extended trading at $76.06. The payment processor announced after the closing bell that it beat estimates by 4 cents.

Global Payments

(GPN) - Get Report

was among the worst losers on Wednesday, sinking 10.4%, or $4.00, to $35.93 before recovering some of its losses to end lower by 8.5% at $36.55. The company missed estimates and issued a profit guidance that was lower than estimates.

East West Bancorp

(EWBC) - Get Report

was another prominent loser, plunging more than 11% to $15.74, on

confusion over its guidance

.

-- Reported by Shanthi Venkataraman in New York.

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