Financial Winners and Losers: Citigroup

Financial stocks were slumping Friday, led by Citigroup's steep decline following a revamping of the government's preferred equity stake.
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Updated from 3:06 p.m. ET

Financial stocks slumped Friday, led by

Citigroup's

(C) - Get Report

steep decline following a revamping of the government's preferred equity stake.

Citi

on Friday said it had reached a deal with the government, in which the government will match -- up to $25 billion -- private investors in converting preferred shares into common stock.

The move led to some speculation that

Bank of America

(BAC) - Get Report

could also eventually work out such a deal.

Citi shares fell 39% to $1.50. BofA shares were off 25.8% to $3.95.

Wells Fargo

(WFC) - Get Report

shares fell 16% to $12.10, after the company said it is suspended bonus payments to five top executives, including CEO John Stumpf, because performance goals were not met in 2008.

The NYSE Financial Sector Index was falling 2.4% to 2,518.

While

AIG

(AIG) - Get Report

also is talking to the government about revisions to its bailout package, other insurers were not so lucky. Shares of life insurers tumbled after Standard & Poor's Ratings Services cut its credit ratings on numerous companies, saying the troubled economy is putting increased pressure on their assets.

Among the companies that saw their ratings cut were

MetLife

(MET) - Get Report

, which fell 23.1% to $18.46;

Hartford Financial Services Group

(HIG) - Get Report

, which was off 14.8% to $6.10;

Prudential Financial

(PRU) - Get Report

, which shed 13% to $16.41; and

Conseco

(CNO) - Get Report

, which was off 22% to $1.21.

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