AIG: Financial Winners and Losers
(
Updated with final stock price moves throughout
.)
NEW YORK (
) --
American International Group
(AIG) - Get Report
was among the decliners of the financial sector Tuesday after an analyst downgraded the stock and set a stock price target that would halve the current share price.
Credit Suisse analysts downgraded
to underperform from neutral, offering a $15 stock price target. The firm said AIG's near-term monetization of its core businesses would leave "little to no value" for common equity holders.
Over the weekend, AIG said that it had sold one major asset-management unit for an estimated $500 million.
Reuters
reports that
Chinatrust Financial
has made a $2.4 billion bid for AIG's Taiwan
Nan Shan Life
unit, outbidding rivals including
Primus Financial
.
Separately,
The Wall Street Journal
on Tuesday reported that the insurer is prepping other life insurance units for initial public offerings next year. However, AIG shares were weighed by the Credit Suisse downgrade, falling 10.5% to close at $35.85.
Among other decliners,
Fannie Mae
(FNM)
and
Freddie Mac
(FRE)
fell 5.6% and 7.9%, respectively, after James Lockhart, the former director of the Federal Housing Finance Agency and currently a vice chairman at W.L. Ross, predicted
both would never fully repay their debts
to the U.S. government.
"I've said and I continue to say that unfortunately the U.S. will probably not be repaid for its full investment in Fannie and Freddie," Lockhart said Tuesday during an appearance on
CNBC's
"Squawk Box." He also predicted that the small profit Freddie reported in the last quarter will not continue.
Elsewhere, bank stocks were mixed Tuesday in an absence of any major headlines.
Citigroup
(C) - Get Report
shares lost 3.5% to close at $4.68 and
Bank of America
(BAC) - Get Report
dipped 0.4% to $17.02. On the upside,
JPMorgan Chase
(JPM) - Get Report
tacked on 0.5% to finish the day at $42.54 and
Goldman Sachs
(GS) - Get Report
rose 2.6% to $167.22.
Also on the winning side,
E*Trade Financial
(ETFC) - Get Report
rose 6.5% to close at $1.65. Last week, William O'Brien, CEO of electronic trading platform
, told
The Wall Street Journal
that the recent surge in financial stocks has lifted revenues, given hope to investors that other trading platforms will also benefit.
Other online brokerages traded higher alongside E*Trade shares.
Charles Schwab
(SCHW) - Get Report
gained 2.1%,
Interactive Brokers
(IBKR) - Get Report
was up 0.9%, and
TD Ameritrade
(AMTD) - Get Report
finished higher by 0.8%.
