NEW YORK (
was among the losers of the financial sector Thursday following a report that U.S. regulators are probing a second collateralized debt obligation.
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.
gained 2.1% to $27.60,
Bank of America
added 1.5% to $15.23,
was up 1.1% to $37.54,
gained 0.5% to $3.89, and
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."
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
reports, citing people familiar with the matter.
After falling nearly 40% Wednesday, Ambac shares were up 3.9% to 67 cents. Fellow bond insurer
slipped 0.5% to $5.65.
jumped by 73 cents, or 12%, to $6.84 after
agreed to acquire the company in a stock deal worth $365 million.
-- Written by Robert Holmes in Boston
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