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Monday's Financial Winners & Losers

Jeffries joins the club and declares a Q4 loss.

Updated from 2:49 p.m. EST with new stock prices

Amid another generally volatile day for Wall Street Monday, the financial sector took a mid-morning plunge before getting above water just before noon, only to take yet another slide: the

NYSE

Financial Sector Index was down fractionally at 7,914.06.

Throughout the trading day, NYSE tracker component

Jefferies Group

(JEF) - Get Jefferies Financial Group Inc. Report

, a New York-based broker, remained mired in the red after it estimated

taking a fourth-quarter loss of around $24 million, or 17 cents a share. As with its multitudinous suffering peers that quarter, the shortfall is ultimately due to an "extremely challenging environment" that made for "weak results" in its high-yield and asset-management business and forced postponement of "a number of deals."

CEO Richard Handler said that he and executive committee chairman Brian Friedman have asked for hefty pay cuts in order to effectively negate 2007 restricted-share awards. Also "in light of

Jefferies' recent results," the pair won't receive bonuses this year.

Handler moreover cited a number of recent changes at the firm, including shutting down two money-losing trading accounts, but said the firm won't be going the capital-infusion route taken by so many of its peers in view of its "strong" balance sheet and "substantial liquidity." Still, shares were down 5.7%, or $1.12, to $18.67. That put substantial pressure on the Amex Securities Broker-Dealer Index, which was off 1% at 190.62.

Sovereign Bancorp

(SOV)

traded mostly lower after Friedman Billings slashed $6 off its price target to $8, citing its belief that the firm will be hit particularly hard by the credit crunch this year. Following a rough start, Sovereign shares poked into the green around early afternoon, but ended easing 1.7% at $10.25.

Also losing ground recently were online broker

TheStreet Recommends

E*Trade

(ETFC) - Get E*TRADE Financial Corporation Report

, down 12.4%; mortgage lender

Countrywide

(CFC)

, down 9.3%; and asset manager

Blackstone

(BX) - Get Blackstone Inc. Report

, which was losing 4.3%.

Among the stalwart winners today was fraught student lender

Sallie Mae

(SLM) - Get SLM Corp Report

, which

resumed a separation of the CEO and chairman roles following a brief period in which Albert Lord acted as both. Lord remains CEO but was shifted to vice chairman of the board, and newcomer Anthony Terracciano has taken the chairman position. In addition, Sallie alum John Remondi is returning as vice chairman and CFO. Shares were gaining $1.16, or 7%, to $17.83.

Elsewhere,

Citigroup

(C) - Get Citigroup Inc. Report

shares saw some mixed trading after

CNBC

reported that the New York bank might lay off between 5% and 10% of its staff, according to people familiar with the situation, as part of a restructuring plan currently being developed by

recently installed CEO Vikram Pandit. Shares dipped into the red this morning, but ended up 0.1% to $28.26.

Other significant financial gainers included banks

National City

(NCC)

and

Huntington Bancshares

(HBAN) - Get Huntington Bancshares Incorporated Report

, as well as credit-card company

Capital One

(COF) - Get Capital One Financial Corporation Report

. Shares were up 1% or more in support of the KBW Bank Index, which climbed 0.9% to 83.97.