Financial Winners and Losers: AIG
Updated from 12:17 p.m. EDT
Bank stocks traded mixed Tuesday following media reports that 10 of the 19 major U.S. financial institutions to will need to boost capital levels after the government's stress tests were completed.
According to a report in
The Wall Street Journal
, the U.S. government will direct about 10 U.S. banks undergoing government
to boost their capital levels. The banks are expected to be briefed on the official results of the stress tests Tuesday.
The
Journal's
report went on to say that officials at one point believed as many as 14 banks would need to raise more funds to create a stronger buffer against future losses, but that number has fallen in recent days.
The news comes one day after reports that
Wells Fargo
(WFC) - Get Wells Fargo & Company Report
,
Citigroup
(C) - Get Citigroup Inc. Report
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and
Bank of America
(BAC) - Get Bank of America Corp Report
were told by the government that
.
The
government stress test
results were expected Monday but were delayed until Thursday afternoon.
Citigroup shares were higher by 3.4% at $3.31 and Bank of America added 4.4% to $10.84. On the other hand, Wells Fargo slid 4% to close at $23.27 and
JPMorgan Chase
(JPM) - Get JPMorgan Chase & Co. Report
was down 2.7% to $34.82.
Elsewhere,
(AIG) - Get American International Group, Inc. Report
shares rallied 18.5% after a
Reuters
report said that the insurer is expected to report a first-quarter loss Thursday, but that its results won't trigger a new capital injection from the U.S. government.
Among decliners,
UBS
(UBS) - Get UBS Group AG Report
once again reported a
, this time losing 1.98 billion Swiss francs ($1.75 billion) in the first quarter, primarily on losses suffered at its investment bank. A year earlier, UBS reported a loss of 11.62 billion Swiss francs. UBS shares shed 1.7% to close at $14.33.
Legg Mason
(LM) - Get Legg Mason, Inc. Report
shares plummeted after the
reported a wider quarterly loss on expenses related to reducing its exposure to risky investment vehicles. Legg Mason also announced that it would slash its dividend 88% to 3 cents a share. Shares tumbled 17.3% to $18.63.
