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Goldman Sachs: Financial Winners & Losers

Goldman Sachs shares rose following chatter the bank is moving to settle fraud charges with the SEC

(Goldman and other stock prices brought current, Bove price target change on Goldman added to this update.)



) --

Goldman Sachs

(GS) - Get Report

was among the few winners of the financial sector Friday following a report of market chatter that the bank may be moving to settle the civil fraud charges filed against it by the

Securities and Exchange Commission


Shares of

Goldman Sachs

traded as high as $145.22 earlier in the session after

noted the market chatter about settlement talks with SEC. The rumor comes a week after

The Financial Times

reported that Goldman is looking to avoid the SEC's fraud charges by reaching a settlement on a lesser offense and agreeing to a hefty fine.

The SEC charged Goldman Sachs on April 16, alleging that the bank defrauded investors by failing to appropriately disclose vital information about how it structured and marketed a synthetic collateralized debt obligation, or CDO, tied to the performance of the subprime residential mortgage-backed securities.

Chatter about a potential settlement between Goldman and SEC is nothing new. In late April, a source told

The New York Post

that "It's almost a certainty that there will be a settlement." In early May,

Fox Business News


The Wall Street Journal

reported that preliminary talks were held between Goldman co-general counsel Gregory Palm and other lawyers and SEC officials.

Goldman shares followed the broader market lower late in Friday's session, falling nearly 1% to $142.90.

Rochdale Securities analyst Dick Bove said in a research note Friday that he was cutting his price target for Goldman to $182 from $200, citing the European debt situation, a weak business environment, the financial regulation bill, and the potential settlement with the SEC.

"In sum, Goldman's stock is likely to stay under pressure," Bove wrote. "However, I still would rather buy than sell it. The long term outlook for this company has not dimmed."

Most other bank stocks were under pressure Friday after a separate market rumor that France's

Societe Generale


has possibly seen losses in its derivatives operations. A SocGen spokesperson refused to comment on the rumor, according to several media outlets.


reports that SocGen is telling analysts that it didn't suffer losses on derivatives, citing two people familiar with the matter.

Among overseas banks trading lower,

Banco Bilbao Vizcaya Argentaria

(BBVA) - Get Report

plunged 9.8%,

Banco Santander


dropped 8%,

Royal Bank of Scotland

(RBS) - Get Report

was down 7%,

National Bank of Greece


fell 6.8%,

TheStreet Recommends


(BCS) - Get Report

slid 6.1%, and

Allied Irish Bank


was off 5.2%.

Back in the U.S.,


(C) - Get Report

fell 4.3% to $3.79,

Wells Fargo

(WFC) - Get Report

lost 3.2% to $27.93,

JPMorgan Chase

(JPM) - Get Report

slid 2.9% to $37.97,

Morgan Stanley

(MS) - Get Report

was off 2.9% to $26.07, and

Bank of America

(BAC) - Get Report

was down 2.7% to $15.39.

In other bank news,

Bank of New York Mellon

(BK) - Get Report

announced plans to offer $700 million worth of common stock. As part of the $700 million public offering, the bank enter into a forward sale agreement with Goldman Sachs. The bank will not receive any proceeds from the offering until settlement of the forward sale agreement, which is expected to occur within five months from the date of the offering.

Bank of New York

said it intends to use any proceeds upon settlement of the forward sale agreement to consummate its acquisition of PNC's Global Investment Servicing business or for general corporate purposes. In February, Bank of New York said it would buy the business from PNC for $2.3 billion.

Bank of New York shares were down 4.3% to $26.11.


American International Group

(AIG) - Get Report

CEO Robert Benmosche wants time to explore options besides a public offering for its Asian life unit after a deal to sell it to

Prudential PLC

(PUK) - Get Report

was terminated, a source familiar with the matter told




Benmosche wants to explore other options for American International Assurance, including selling parts of the business, after AIG's board on Monday voted down a sale to Prudential at a reduced price, the report.

AIG shares were down 1.5% to $34.66.

-- Written by Robert Holmes in Boston


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