Citigroup: Financial Winners & Losers

Citigroup and other bank stocks fell on reports that regulators are investigating whether they misled the rating agencies about the safety of certain mortgage-backed securities.
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(Citigroup and other stock prices brought current in this update.)



) --


(C) - Get Report

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.

Citigroup and other bank stocks

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,

Morgan Stanley

(MS) - Get Report


Goldman Sachs

(GS) - Get Report


Bank of America's

(BAC) - Get Report

Merrill Lynch

were served Wednesday with subpoenas, the report said.

Regulators are also probing four European lenders for misleading ratings agencies about mortgage securities, including

Credit Agricole


Credit Suisse

(CS) - Get Report


Deutsche Bank

(DB) - Get Report



(UBS) - Get Report



The Wall Street Journal

reported separately that federal prosecutors, working with securities regulators, are conducting a preliminary

criminal probe

into whether several major banks including

JPMorgan Chase

(JPM) - Get Report

, 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

Huntington Bancshares

(HBAN) - Get Report

rising 0.3%


(KEY) - Get Report

up 0.2%, while

SunTrust Banks

(STI) - Get Report

fell 1.4% and

Fifth Third Bancorp

(FITB) - Get Report

gave back 0.6%.

Insurers were trading mostly lower.

American International Group

(AIG) - Get Report

was down nearly 2% to $40.64,

Hartford Financial

(HIG) - Get Report

lost 1.5%, and


(MET) - Get Report

was off 1.2%.

Mortgage and bond insurers were also on the decline.

Radian Group

(RDN) - Get Report

fell nearly 1%,

Ambac Financial


slipped 0.7%,


(MBI) - Get Report

lost 1%, and

The PMI Group


was lower by 2.2%

-- Written by Robert Holmes in Boston


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