Financial stocks dropped Friday as higher oil prices and a disappointing report on consumer spending and income weighed on the broader market.
The NYSE Financial Sector Index fell 0.7% and the
Dow Jones Industrial Average
fell 1% in morning trading.
Bank of New York Mellon
slumped 2.6% to $34.48. The company said Thursday that a data breach first disclosed in May involves information from 12 million individuals, about 8 million more than it initially reported.
Bond insurers gave up much of the
previous day's gains , with
declining more than 6% to $15.16, and
down 4.5% to $7.09.
Government-supported mortgage giants
reversed course after a week of dramatic gains, dropping 12.2% to $6.98 and 13.1% to $4.59, respectively.
Indications that the credit crunch has spread to the shores of Puerto Rico also affected some stocks.
said Friday that it will take a $450 million loss to exit its U.S. mortgage business. Popular is selling $1.17 billion worth of mortgage and servicing assets to
for a price of $700 million.
Popular shares rallied more than 20% following the news, but were recently trading up 11.6% at $8.07. Goldman rose to $162.86.
The Puerto Rico arm of Spanish banking giant
management shake-up and said it would halt its dividend on common shares, citing "continuing challenging general economic conditions in Puerto Rico and the global capital markets." Santander shares dropped 14 cents to $16.99.
Beleaguered regional bank
surged 17.3% to $1.76 after major stockholder
said it had bought 2 million shares over the past 10 days.
"BankAtlantic Bancorp's stock price has been unfairly depressed largely due to misinformation provided to the market," BFC CEO Alan Levan said in a statement.
BankAtlantic's stock has been hurt by
a report suggesting it may be in danger of collapsing. BFC shares also surged following its disclosure, recently trading up 19.2% to 62 cents, but had risen earlier as high as $3.99.