NEW YORK (
was among the top performing bank stocks as the financial sector continued to climb Wednesday following upbeat remarks on the economy from the head of the
shares rose 4.3% to $3.88 as the broader financial sector traded higher following positive remarks from Fed Chairman Ben Bernanke during his appearance before the House Budget Committee.
"The economy -- supported by stimulative monetary policy and the concerted efforts of policymakers to stabilize the financial system -- appears to be on track to continue to expand through this year and next," Bernanke told the House committee.
More on Citi Cramer: Must Buy Citi
U.S. markets rose after Bernanke's testimony, with the
Dow Jones Industrial Average
climbing back above the 10,000 mark. The financial sector was part of the upswing, with the
iShares Dow Jones U.S. Financial Sector
climbing 1.1%, the
Financial Select Sector SPDR
up 0.9%, and the
SPDR KBW Bank
In addition to Citigroup, bank stock winners included
, which was up 1% to $139.11, and
, which gained 0.9% to $25.83.
Bank of America
was up 0.4% to $15.39.
On the downside,
slipped 0.1% to $37.74, while
was down 0.5% to $27.62.
shares fell even after the bank said it has signed a joint venture agreement with First Capital Securities to underwrite initial public offerings and fund raisings in the Chinese domestic market. The foray into China's IPO market is part of JPMorgan's wider push to grab a larger share of fees coming from the country's growing capital markets industry.
Among other losing financial stocks,
( ABK) plunged by 37 cents, or 35%, to 69 cents after the bond insurer said in a regulatory filing that it may seek a negotiated restructuring through a prepackaged bankruptcy.
In addition, senior debtholders of the company have formed a committee to nudge
reports, citing people familiar with the matter.
On the other hand,
jumped by 43 cents, or 9.9%, to $4.77 after the company extended its debt-exchange offer by one day to June 9. American Capital needs approval from 85% of its noteholders for its plan to restructure debt, although only 14% of participating noteholders supported the company's plan.
-- Written by Robert Holmes in Boston
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