Goldman Sachs: Financial Winners & Losers

Goldman Sachs shares rose even after the bank was fined by regulators.
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) --

Goldman Sachs

(GS) - Get Report

was one of few winners of the financial sector Tuesday even after the bank was fined by regulators for 385 violations in processing trades.

Goldman Sachs

rose after the

New York Stock Exchange

and the

Securities and Exchange Commission

fined one of the firm's Goldman Sachs Execution & Clearing unit $450,000. The SEC said that Goldman Sachs failed "to deliver certain securities or immediately purchase or borrow securities to close out the fail-to-deliver position." Goldman settled "without admitting or denying the findings."

The SEC and NYSE said Goldman Sachs violated the temporary Regulation SHO Rule, which was a response to concerns about "naked" short selling. The rule required registered clearing agencies to either deliver securities on a settlement date or, in connection with short sales, immediately purchase or borrow securities to close out the fail-to-deliver position.

"GSEC initially responded to the Rule by implementing procedures that were inadequate in that they relied too heavily on individuals to perform manual tasks and calculations, without sufficient oversight or verification of accuracy," the SEC said.

The administrative filing said that Goldman Sachs Execution & Clearing accepted approximately 385 short sales in securities without a pre-borrow between Dec. 9, 2008, and Jan. 22, 2009.

Still, Goldman Sachs shares were up $1.56, or 1%, to $151.06.

Most other major U.S. banks were trading lower.


(C) - Get Report

lost 3% to $4.28,

Morgan Stanley

(MS) - Get Report

slid 2.9% to $29.54,

Bank of America

(BAC) - Get Report

fell 2.2% to $17.66, and

JPMorgan Chase

(JPM) - Get Report

was down 1.9% to $42.72

Elsewhere, mortgage insurers were under pressure after

Radian Group

(RDN) - Get Report

became the latest to report a quarterly loss and to announce a stock offering.

Radian Group

reported a first-quarter loss of $3.77 a share, which grew from a year-ago loss of $2.69 a share. Separately, the company said it will offer up to $550 million of common stock.

Radian shares were tumbling 10.8% to $13.05. Fellow mortgage insurer

MGIC Investment

(MTG) - Get Report

fell 8.9% to $10.14, and

The PMI Group


was down 4.2% to $5.

American International Group

(AIG) - Get Report

was also among the losers of the financial sector Tuesday, falling 3.3% to $38.25. AIG said Tuesday it will report first-quarter financial results on Friday before the start of trading.

Overseas bank stocks were plummeting on fears Greece debt problems would spread across Europe. World markets fell under the weight of doubt that Greece's rescue package would be enough to ease contagion fears.

National Bank of Greece


shares trading in New York dropped 10.6% to $2.86,

Royal Bank of Scotland

(RBS) - Get Report

slid 8.9% to $15.35,

Lloyds Banking Group

(LYG) - Get Report

was down 8.8% to $3.75,

Bank of Ireland


lost 8.4% to $8.17, and

Banco Santander


fell 8.2% to $11.22

On the earnings front,


(UBS) - Get Report

said first-quarter earnings were 2.2 billion Swiss francs ($2.02 billion), a swing from a year-earlier loss of 1.98 billion francs and above analysts' consensus view.

UBS said net new money outflows in the quarter in its wealth management division were 8.2 billion francs compared with 32.9 billion francs in the fourth quarter of 2009.

-- Written by Robert Holmes in Boston


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