Updated with stock price moves
NEW YORK (
Bank of America
was among the losers of the financial sector Tuesday following a report that the bank's new CEO is ousting its chief risk officer.
was down 3.4% after a report that new CEO Brian Moynihan will shuffle management around, which will result in Gregory Curl losing his job as chief risk officer.
The Wall Street Journal
reports that Curl's new duties likely will include managing certain relationships, but he probably will leave Bank of America after an unspecified period of time, people close to him say. Curl has held the post of chief risk officer since mid-2009. Curl had been on the short list of successors for outgoing CEO Ken Lewis before being passed over in favor of Moynihan.
Moynihan is expected to reorganize Bank of America's top management soon, with an announcement likely on who will replace Moynihan as head of the bank's consumer-banking operations, the
In other Bank of America news, the
Securities and Exchange Commission
has expanded charges against Bank of America for failing to disclose big losses at
prior to the bank's acquisition of the brokerage firm a year ago. The SEC said it wouldn't file charges against any individual Bank of America executives, directors, or attorneys, because no evidence was found they sought to mislead shareholders.
The New York Times
is negotiating with the staff of New York Attorney General Andrew Cuomo to settle claims that the bank failed to adequately disclose the risks of its takeover of Merrill Lynch to its shareholders, citing people with knowledge of the matter.
While no settlement has been reached and the talks are continuing, Moynihan is interested in bringing an end to myriad legal troubles plaguing the bank, the paper reported, adding that both sides met last Friday to discuss a possible deal.
Bank of America shares were lately down 57 cents to $16.36.
Other banks were also trading lower on a report that the
is mulling exacting a bailout fee from banks to recoup losses from the government's bailout program, according to administration officials who spoke with
The Wall Street Journal
The White House hopes the fee will soothe the public anger at financial firms which have resumed paying big bonuses to employees. House Financial Services Committee Chairman Barney Frank told the
, "Given the mood of the country it is essential that we do it. That was part of the deal."
fell 2.8% to $3.53,
slid 2.6% to $43.38,
lost 2.6% to $31.21, and
slumped 2.5% to $28.09.
also lost ground after JMP Securities analysts cut their fourth-quarter earnings target for the bank to $5.50 from $6.50 a share, although that is still above the consensus target of $5.33 a share. While JMP Securities said it still maintains a positive bias on Goldman, the earnings cut is due to seasonal weakness.
Goldman shares were lately down 2% to $168.15.
On the winning side,
rallied 4.6% to $27.37 after the insurer upped its fourth-quarter adjusted earnings projection to a range of $1.45 to $1.60 a share, compared with its earlier range of 65 cents to 80 cents a share. Hartford said in the improved forecast is due to strong results from its insurance and financial businesses.
Other insurers traded down, though.
American International Group
fell 3.3% to $28.64, and
American Financial Group
slipped 0.7% to $25.25.
-- Written by Robert Holmes in Boston
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