NEW YORK (
was a standout gainer among financial stocks on Friday as heavy selling dragged on other players in the sector. Shares of Goldman rose as much as 4.8% before giving up gains under broad-market selling pressure to close at $146.17, up 0.7%, or 95 cents.
On Thursday, the Securities and Exchange Commission announced that Goldman Sachs had agreed to pay $550 million to settle civil fraud charges that it had misled its clients when marketing an investment product. The settlement is the largest penalty ever paid by any financial institution.
Market analysts considered the settlement a victory for Goldman as it appeared unlikely that the company will face more civil litigation following the settlement. The penalty was also lower than what many analysts had expected. Leading brokerages including Bank of America/Merrill Lynch,
all upgraded the stock.
Other financial stocks ended deep in the red after
Bank of America
and Citigroup declared their results. Both companies beat earnings estimates, but fell short on revenue estimates on trading losses and lower lending. Shares of Bank of America tanked 9.2%, or $1.41, to close at $13.98. Citigroup shed 6.3%, or 26 cents, to $3.90.
More on Big Banks Bank Creditors Are Still Scared
Bank of America's weakness on the revenue front suggests that demand for loans may still be an issue, even as improving credit quality helps profit growth. Its results are an indicator of how other large banks such as
and Goldman Sachs will perform next week. Wells Fargo ended the day 5.6% or $ 1.57 lower at $26.24. Morgan Stanley shed 3.3%, or $0.85, to $24.74.
fell 3.6%, or $1.46, to $39.00.
was among Friday's biggest gainers, shooting up more than 7% before cooling off to $15.22, up 4.1%. The company reported earnings of 17 cents a share, beating estimates by 2 cents.
was up marginally after it received an upgrade to neutral from Bank of America/Merill Lynch.
After turning in a surprise profit,
First Horizon National
rose 1%, or 12 cents, to $12.23 in the morning session before giving up all its gains to lose 2.6% to end at $11.79.
Super regional bank
Fifth Third Bancorp
was among the worst performers on Friday, shedding 8.2%, or $1.08, to $12.17.
-- Reported by Shanthi Venkataraman in New York.
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