Goldman Sachs and other stock prices brought current in this update
NEW YORK (
was among the losers of the financial sector Tuesday as regulatory fears outweighed a positive first-quarter earnings report.
reported a first-quarter profit of $5.59 a share, which blew past the Thomson Reuters average estimate of $4.01 a share. Revenue was up 35.5% from a year ago to $12.78 billion, also better than forecasts.
Investment banking revenue climbed 44% from a year ago to $1.18 billion, although that was down 28% sequentially. Revenue from equity and debt underwriting was "significantly higher," Goldman Sachs said.
The earnings release came days after the
Securities and Exchange Commission
filed civil-fraud charges against Goldman Sachs, saying the bank defrauded investors by failing to disclose to investors vital information about its structured and marketed a synthetic collateralized debt obligation, or CDOs, tied to the performance of the subprime residential mortgage-backed securities.
"In light of recent events involving the firm, we appreciate the support of our clients and shareholders, and the dedication and commitment of our people," Goldman Chairman and CEO Lloyd Blankfein said in a statement accompanying the earnings release.
, the bank's London subsidiary will be investigated by the Financial Services Authority, Britain's financial regulator. The FSA said Tuesday it would be working closely with the SEC in the U.S.
The FSA is likely to focus on the
Royal Bank of Scotland
, which paid $841 million to Goldman Sachs in 2007 to unwind its position in a fund acquired in the takeover of Dutch Bank
The Associated Press
American International Group
is considering potential claims against Goldman Sachs and other Wall Street firms over losses incurred on $6 billion of insurance deals on mortgage-backed securities,
The Wall Street Journal
reported late Monday, citing a person familiar with the matter.
Goldman Sachs shares were lately down 1.5% to $160.83. The stock has fallen 12.3% over the last three sessions following the fraud allegations.
Other major U.S. bank stocks were gaining ground Tuesday.
, which was holding its
, gained 2% to $4.97,
rose 1.7% to $33.57,
added 2.3% to $30.24,
climbed 0.7% to $45.72, and
Bank of America
was up 0.7% to $18.52.
In other earnings news,
said it swung to a loss of 21 cents a share in the first quarter, although that was narrower than the 27-cent-a-share loss Wall Street expected. Regions said non-performing assets, excluding loans held for sale, increased 5.4%, marking the third consecutive quarter of moderation in the overall growth rate.
Shares were Regions Financial were lately tacking on 3.6% to $8.63.
Marshall & Ilsley
beat analysts' expectations after reporting a first-quarter loss of 27 cents a share. Analysts polled by Thomson Reuters for a loss of 40 cents a share. Shares were jumping 10.3% to $9.28.
Bank of New York Mellon
shares were flat after the bank posted an adjusted first-quarter profit of 59 cents a share, which was above the Thomson Reuters average estimate for a profit of 53 cents a share. The bank said nonperforming assets rose 9% from a year ago to $459 million. The stock was only 4 cents higher at $32.18, having traded as low as $31.54 earlier in the session.
shares also dropped after reporting quarterly results. The company said it earned 99 cents a share in the first quarter or 75 cents a share on an operating basis, which matched the Thomson Reuters average estimate. Operating-basis revenue of $2.12 billion was below the consensus target of $2.18 billion.
State Street was falling 4.6% to $45.08.
-- Written by Robert Holmes in Boston
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