NEW YORK (
was one of few winners of the financial sector Tuesday even after the bank was fined by regulators for 385 violations in processing trades.
rose after the
New York Stock Exchange
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.
lost 3% to $4.28,
slid 2.9% to $29.54,
Bank of America
fell 2.2% to $17.66, and
was down 1.9% to $42.72
Elsewhere, mortgage insurers were under pressure after
became the latest to report a quarterly loss and to announce a stock offering.
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
fell 8.9% to $10.14, and
The PMI Group
was down 4.2% to $5.
American International Group
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
slid 8.9% to $15.35,
Lloyds Banking Group
was down 8.8% to $3.75,
Bank of Ireland
lost 8.4% to $8.17, and
fell 8.2% to $11.22
On the earnings front,
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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