(Citigroup and other stock prices brought current in this update.)
NEW YORK (
was among several bank stocks trading lower Thursday following reports that regulators are investigating whether they misled the rating agencies about the safety of certain mortgage-backed securities.
were trading lower after
The Associated Press
both reported that New York Attorney General Andrew Cuomo is opening an investigation into whether eight banks misled rating agencies, citing sources familiar with the matter. P/>Four U.S. banks, including Citigroup,
Bank of America's
were served Wednesday with subpoenas, the report said.
Regulators are also probing four European lenders for misleading ratings agencies about mortgage securities, including
The Wall Street Journal
reported separately that federal prosecutors, working with securities regulators, are conducting a preliminary
into whether several major banks including
, Citigroup, Deutsche Bank and UBS, misled investors about their roles in mortgage-bond deals.
The Wall Street banks also have received civil subpoenas from the
Securities and Exchange Commission
as part of a probe of banks' selling and trading of mortgage-related deals, according to a person familiar with the matter, the
reports. Goldman Sachs and Morgan Stanley are also part of the probe.
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Among the U.S. bank stocks losing ground Thursday, Citigroup fell 1.9% to $4.10, Goldman Sachs was down 1.5% to $145, JPMorgan Chase lost 1.8% to $40.93, and Bank of America was off 0.5% to $16.99.
Among the overseas bank stocks, Deutsche Bank lost 3.1% to $63.04, Credit Suisse slid 2.4% to $43.05 and UBS was down 2.1% to $14.67.
Morgan Stanley, on the other hand, rose fractionally to $27.81. The increase came after FBR Capital Markets analysts upgraded the stock to outperform from market perform with a price target of $35.
Regional bank stocks were mixed, with
up 0.2%, while
fell 1.4% and
Fifth Third Bancorp
gave back 0.6%.
Insurers were trading mostly lower.
American International Group
was down nearly 2% to $40.64,
lost 1.5%, and
was off 1.2%.
Mortgage and bond insurers were also on the decline.
fell nearly 1%,
lost 1%, and
The PMI Group
was lower by 2.2%
-- Written by Robert Holmes in Boston
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