Goldman Sachs: Financial Winners & Losers - TheStreet

Goldman Sachs: Financial Winners & Losers

Goldman Sachs shares fell following a report that U.S. regulators are probing a second collateralized debt obligation
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NEW YORK (

TheStreet

) --

Goldman Sachs

(GS) - Get Report

was among the losers of the financial sector Thursday following a report that U.S. regulators are probing a second collateralized debt obligation.

Goldman Sachs

shares fell 2.5% while the rest of the financial sector was on the rise after

The Financial Times

reported that the

Securities and Exchange Commission

has stepped up its examination into a Goldman CDO that wasn't part of the civil fraud charges filed against the firm in April.

The SEC's interest in Hudson Mezzanine Funding, a $2 billion CDO, comes amid settlement talks with Goldman over accusations that the bank defrauded investors in Abacus, a similar CDO, the newspaper reports, citing people close to the matter.

Goldman Sachs shares were falling 3.2% to $132.42, bringing its three-month slide to 22.2%.

While Goldman fell, other major U.S. bank stocks were on the rise.

Wells Fargo

(WFC) - Get Report

gained 2.1% to $27.60,

Bank of America

(BAC) - Get Report

added 1.5% to $15.23,

JPMorgan Chase

(JPM) - Get Report

was up 1.1% to $37.54,

Citigroup

(C) - Get Report

gained 0.5% to $3.89, and

Morgan Stanley

(MS) - Get Report

tacked on 0.2% to $25.18.

More on Citi Farley: Citigroup Stock Could Triple

Bank of America rose as Rochdale Securities analyst Dick Bove said in a research note that it is "quite possible" that the bank is in the process of a "Citigroup-style" breakup following the sale of several assets.

"What is relevant about the sale of the Mexican bank and other interests is that these sales represent what is now an ongoing restructuring of this company," Bove wrote of Bank of America.

"More sales are quite likely of consumer finance related businesses, asset management positions, and other ventures," he added. "The bank may be remaking itself as a capital markets company with far reaching international interests."

Elsewhere,

Ambac Financial

(ABK)

regained some of Wednesday's 40% drop, which came after the bond insurer said in a regulatory filing Wednesday that it may seek a negotiated restructuring through a prepackaged bankruptcy as liquidity may run out before the second quarter of 2011.

In addition, senior debtholders of the company have formed a committee to nudge

Ambac toward a prepackaged bankruptcy plan

,

Reuters

reports, citing people familiar with the matter.

After falling nearly 40% Wednesday, Ambac shares were up 3.9% to 67 cents. Fellow bond insurer

MBIA

(MBI) - Get Report

slipped 0.5% to $5.65.

Elsewhere,

PMA Capital

(PMACA)

jumped by 73 cents, or 12%, to $6.84 after

Old Republic

(ORI) - Get Report

agreed to acquire the company in a stock deal worth $365 million.

-- Written by Robert Holmes in Boston

.

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