Financial Winners and Losers: Visa - TheStreet

Financial Winners and Losers: Visa

Financial stocks were mixed Tuesday, with Visa among the decliners after the credit card network announced management changes.
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(Updated with final stock price moves throughout.)



) -- Financial stocks finished mixed Tuesday, with


(V) - Get Report

among the decliners after the credit card network announced management changes.

Late Monday, Visa said that John (Hans) Morris, will step down from this position of president, and he will remain with the company until the end of the year in a different capacity. Visa also said that it will consolidate global sales, client service, product development and innovation functions under the leadership of Chief Operating Officer John Partridge.

In addition, company Chairman and CEO Joe Saunders said that Visa will "continue to meet or exceed all our current financial guidance."

Visa will report quarterly results

after the close of trading Wednesday, and analysts anticipate the company will report earnings of 64 cents a share on revenue of $1.63 billion, according to Thomson Reuters.



(MA) - Get Report

, meanwhile, is expected to notch a profit of $2.42 a share on revenue of $1.24 billion when it reports late Thursday.

Visa shares ended the day down $1.89, or 2.8%, to close at $66.30. MasterCard was lower by $2.19, or 1.2%, to $186.94.

Among bank stocks,

Bank of America

(BAC) - Get Report

shares rose 1.9% after reports the company plans to trim about 10% of the bank's 6,100 branch network.

The Wall Street Journal

reported Tuesday that BofA CEO Kenneth Lewis discussed the plans during a meeting last week. Liam McGee, president of BofA's consumer and small-business bank, also said branch closings are part of the plans but said it would be premature to specify how many locations could be closed, the report said, citing people familiar with the conversation.

Dick Bove, analyst with Rochdale Securities, said that BofA's branch closures is not due to a shift in consumer preferences, arguing that the reason for the closures is both economic and regulatory.

"Bank of America is not closing branches because consumer preferences have changed," Bove wrote in a research note. "This is laughable since the past decade in banking has clearly shown the consumer preference is for labor intensive branch banking. These banks are being closed for economic reasons and to avoid excessive regulatory problems."

BofA shares climbed 25 cents to finish at $13.34. Elsewhere,


(C) - Get Report

jumped 10.4% to $2.97, and

Wells Fargo

(WFC) - Get Report

was 1.2% higher at $24.52. Meanwhile

JPMorgan Chase

(JPM) - Get Report

shares dipped 0.1% to $38.08.

On the earnings front,

Deutsche Bank

(DB) - Get Report

said second-quarter earnings rose 67% to 1.1 billion euros ($1.57 billion) from 645 million euros a year earlier as its investment banking business stabilized.

However, the German bank was forced it to increase its provision for bad loans due to the deteriorating economy. Provision for credit losses in the quarter was 1 billion euros, vs. 135 million euros in the second quarter of 2008.

Following its earnings report, FBR Capital Markets and UBS downgraded Deutsche Bank's stock to market perform and neutral, respectively. Shares tumbled $7.56, or 10.2%, to finish at $66.32.


Reported by Robert Holmes in New York