NEW YORK (
was among the losers of the financial sector Friday following a report that the firm has stepped in to save Shorebank.
CEO Lloyd Blankfein has gotten personally involved in helping to arrange a $125 million rescue for a Chicago community bank that provides loans to lower-income communities,
The Financial Times
Chicago-based ShoreBank was told by the Federal Deposit Insurance Corp. in March that it had 60 days to raise capital or risk being seized. ShoreBank has high-profile supporters in Washington as the bank has worked to expand lending in poor communities, according to the report.
Goldman Sachs shares were down 1.5% to $142.46. For the week, Goldman shares have given back only 0.3%, although the stock traded as high as $149.90 during Monday's session.
Most other major U.S. bank stocks were lower one day after a report that
is opening an investigation into whether eight banks misled rating agencies on mortgage-related securities. Goldman,
Bank of America's
were served Wednesday with subpoenas, according to reports.
The Wall Street Journal
reported that the
Securities and Exchange Commission
is now investigating whether Wall Street banks used their own money to bet in financial markets against municipal bonds that they had sold. The fact finding probe may not result in any formal action, the newspaper reports, citing people familiar with the matter.
Lately, Citigroup was falling 3.9% to $3.93, Bank of America retreated 3.7% to $16.25, and Morgan Stanley lost 2.2% to $27.01
Meanwhile, Regulators are also probing four European lenders for misleading ratings agencies about mortgage securities, including
On Thursday, Rochdale Securities analyst Dick Bove cut his rating on UBS and Credit Suisse, citing a deteriorating situation in Europe's financial community.
Bove lowered his rating on UBS to neutral from buy and cut his target price on the stock to $16 from $21. Separately, he downgraded Credit Suisse to neutral with a price target of $50, down from $60.
"The downgrade has little to do with Credit Suisse's operation of its business units," Bove wrote. "I am very impressed by the company's business model. The rating adjustment reflects my fears that the European economic situation is going to get meaningfully worse before the region's economic problems are resolved."
UBS shares were down 4% to $14.03, and Credit Suisse lost 4.1% to $41.21.
were also trading lower after the U.S. Senate tacked amendments onto the larger financial reform bill still winding its way through Congress that could curb debit card fees.
Laurie Kulikowski reports that the amendments would give the
oversight of interchange fees and allow merchants to negotiate minimum purchase amounts for card use.
shares were tumbling 10.7% to $76.54, while MasterCard dropped 8.3% to $213.01.
-- Written by Robert Holmes in Boston
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