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) -- Investors were buying back into bank stocks on Friday following bearishness earlier in the week on mixed earnings reports.

Elsewhere in the financial sector, pink-sheet penny stocks

Fannie Mae



Freddie Mac


continued to shed massive value -- tracking 6.7% and 4% lower in late-morning trading.

The KBW Bank Index of large-cap stocks was up 0.2% at 45.95 in recent trading. Among the biggest positive movers were

Huntington Bancshares

(HBAN) - Get Huntington Bancshares Incorporated Report

, up 2% at $5.73,

Fifth Third

(FITB) - Get Fifth Third Bancorp Report

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, up 1.9% at $13.04,


(C) - Get Citigroup Inc. Report

, up 1.2% at $4.12 and

PNC Financial Services

(PNC) - Get PNC Financial Services Group, Inc. Report

, up 1.2% at $54.21. On the downside were

People's United

(PBCT) - Get People's United Financial, Inc. Report

, down 2.5% at $12.72,

Marshall & Ilsley


, down 2.4% at $6.01,

U.S. Bancorp

(USB) - Get U.S. Bancorp Report

, down 0.9% at $23.15 and


(STI) - Get SunTrust Banks, Inc. Report

, down 0.7% at $26.41.

Huntington was among several regional lenders that reported better-than-expected results. On Thursday, the Columbus, Ohio-based regional lender beat profit expectations by 3 cents a share, having reversed losses in the year-ago period. Fifth Third posted similar trends, as did PNC.

But not all regional lenders fared quite so well.

Marshall & Ilsley saw its ratings cut to "junk" on Thursday because of ongoing losses. The Milwaukee-based bank also

shook up its top management when reporting a $169 million loss on Wednesday.

As for the big kahunas of banking, it was similarly a mixed bag.

Citi not only reported a $2.2 billion profit on Monday but the government followed up that better-than-expected report by saying it

plans to whittle down its common equity stake to 7% by year-end. Wall Street was also particularly pleased with

Wells Fargo's

(WFC) - Get Wells Fargo & Company Report

core earnings power and

Goldman Sachs'

(GS) - Get Goldman Sachs Group, Inc. Report

surprisingly strong investment banking results - the two stocks have climbed more than 10% and 6%, respectively, over the past week.


Bank of America

(BAC) - Get Bank of America Corp Report

investors faced more pain this week, following the bank's report of a $7.3 billion quarterly loss and a letter from high-profile investors demanding that it buy back $47 billion worth of toxic mortgage debt. Its stock is down nearly 5% for the week, having hit fresh lows on Tuesday, Wednesday and Thursday.

On Friday, Wells was tracking 0.5% higher at $26.16 while Bank of America was recouping some losses, heading 1.1% higher at $11.48. Goldman shares were down 0.7% at $158.25 by late-morning. Competitor

Morgan Stanley

(MS) - Get Morgan Stanley Report

posted results earlier in the week, which even its CEO found disappointing, was tracking 0.2% higher at $24.65.

Rounding out the big-bank ranks was

JPMorgan Chase

(JPM) - Get JPMorgan Chase & Co. Report

, down 0.2% at $37.62. JPMorgan faces similar problems with foreclosures and buybacks as Bank of America, but to a lesser degree. Its stock has remained relatively resilient.

Also related to the mortgage mess were Fannie and Freddie whose regulator on Thursday outlined hundreds of billions of dollars in bailout funds the two firms will need in the years ahead. Fannie, the larger of the two mortgage-finance giants, was down 6.7% at 36 cents, while Freddie was down 4% at 38 cents.

Insurance giant

American International Group

(AIG) - Get American International Group, Inc. Report

was showing the opposite trend - up 1.6% at $41.95 on news that the firm successfully raised nearly $18 billion to repay bailout funds via the biggest-ever Hong Kong IPO for an insurance unit. AIG has moved far out from the zombie stock ranks it shared with Fannie and Freddie just over a year ago.

-- Written by Lauren Tara LaCapra in New York


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Lauren Tara LaCapra


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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.