(Updated with closing prices throughout.)
NEW YORK (
-- Financial stocks were mixed Friday, with
among the sector's winners after the Swiss bank reached a settlement with the U.S. government.
A Justice Department official told a U.S. District Court Judge Friday that UBS and the U.S. and Swiss governments have reached a settlement in their recent tax case. The federal government was suing UBS for the names of some 52,000 U.S. citizens who are alleged to have hidden nearly $15 billion in assets from the Internal Revenue Service.
A month earlier, Swiss media outlets
NZZ am Sonntag
reported that UBS would fork over between 3 billion to 5 billion francs ($2.77 billion to $4.62 billion) to settle the tax dispute. A hearing scheduled for Monday was postponed until Aug. 10, at which point more details are expected to be released, according to
The Wall Street Journal
UBS shares jumped 95 cents, or 6.9%, to finish at $14.74, making it one of the best performing financial stocks Friday.
was also among winning bank stocks Friday on a report it is planning to set up a wholly owned banking unit in China.
Citing people familiar with the situation,
reported that BofA will use this China-incorporated unit to focus on corporate lending and investment banking activities. BofA shares climbed 82 cents, or 5.9%, to $14.79.
shares gave up early gains and finished lower even after Credit Suisse upped its price target for the credit card company to $210 from $185. On Thursday, MasterCard beat Wall Street's top- and bottom-line estimates when it reported second-quarter earnings. Shares slipped 8 cents, or 0.1%, to $194.03, having climbed 3% Thursday.
Other bank and financial stocks were mixed.
overcame early weakness to close 1% higher at $3.17. Among other advancers,
tacked on 0.5%, while
In bank-related news,
said bonuses paid to executives at nine banks that received U.S. government bailout money in 2008 were greater than net income at some of the banks.
In a report on months of investigation into compensation paid by the banks, Cuomo said bank employee pay "has become unmoored from the banks' financial performance," according to the report.
-- Written by Robert Holmes in New York