(Updated with final stock price moves throughout.)
NEW YORK (
) -- Financial stocks turned mixed Tuesday afternoon, although
continued to be among the biggest decliners after it posted a third straight quarterly loss.
The Swiss bank said it posted a wider second-quarter loss of 1.4 billion Swiss francs ($1.32 billion) from a year-earlier loss of 395 million francs, pressured by increasing withdrawals. The net outflow in the quarter was 39.4 billion francs, compared with 14.9 billion francs in the first quarter.
UBS said the recent quarter had a restructuring charge of 582 million francs, in addition to a goodwill write-off of 492 million francs following the sale of UBS Pactual. The bank also recorded 1.21 billion of charges related to the market value of its own debt. Excluding these items, pretax operational profit was 971 million francs, UBS said.
Independent research firm CreditSights reiterated its underperform rating on UBS shares Tuesday, arguing that the bank has weakened its capacity to generate revenues, particularly in fixed income trading.
"As a result,
UBS reported another loss (or a small profit on an underlying basis) in
the second quarter, failing to benefit fully from what should have been a relatively strong quarter," the firm said in a research note. "And continuing net outflows from its asset management business as its reputation is damaged by regulatory disputes in the U.S. highlight ongoing weaknesses compared with peers."
Shares of the Swiss bank dropped $1.17, or 7.6%, to close at $14.29.
Other bank stocks finished higher after yet another better-than-expected read on the housing market. The National Association of Realtors said its pending homes sales index jumped 3.6% in June, much higher than estimates and its fifth straight monthly gain.
climbed 2.9% to $26.55,
added 2.2% to $3.25,
Bank of America
jumped 2.1% to $15.64, and
ended up 1.5% at $40.21.
was also among the winners Tuesday, following a report that CEO Lloyd Blankfein has warned his employees to avoid making big-ticket, high-profile purchases in order to deflect a barrage of negative press lately over its uncanny ability to make money.
The New York Post
reported Tuesday that Blankfein told employees it is a sensitive time for the firm, and the he "wants to make sure that we're not being seen living high on the hog," according to one Goldman exec. Goldman shares ended higher by $1.07, or 0.7%, at $165.17.
American International Group
chief Robert Benmosche has been tapped to become the insurer's new CEO starting Aug. 10. Benmosche will succeed current CEO Edward Liddy, who is retiring after less than a year in the position. AIG was finished down 8 cents, or 0.6%, at $13.52.
, Europe's largest bank, is aiming for a Shanghai initial public offering in 2010, which it hopes will raise between $3 billion and $5 billion, according to
Dow Jones Newswires
. The report quoted HSBC's Asia-Pacific Chief Executive Sandy Flockhart, who said that China is "the largest part of the puzzle." HSBC shares in the U.S. slipped 2 cents, or 0.1%, to close at $54.48.
Australia and New Zealand Banking Group
has struck a deal to buy select Asian banking businesses from
Royal Bank of Scotland
for about $550 million. The move is expected to help ANZ extend its reach and compete better with rivals in the fast-growing Asian markets.