Updated with final stock price moves.
NEW YORK (
was among the decliners in the financial sector Wednesday following word it and
Bank of America
would alter their policies on overdraft fees for customers.
The Associated Press
late Tuesday that starting in the first quarter of 2010 it will make overdraft protection opt-in for all customers, eliminate fees when accounts are overdrawn by $5 or less, and will reduce the maximum number of fees per day to three from six.
JPMorgan shares dropped $1.41, or 3%, to close at $45.06.
Meanwhile, Bank of America said starting next month it won't charge overdraft fees when a customer's account is overdrawn by less than $10 for one day. BofA also said it won't charge overdraft fees on more than four items per day. BofA customers also will be allowed to opt out of the overdraft program, meaning purchases won't go through if a customer doesn't have enough money in an account to purchase an item.
BofA was involved in several other headlines Wednesday not related to overdraft fees. After missing a Monday deadline,
met Tuesday with House Oversight Committee Chairman Rep. Edolphus Towns (D., N.Y.) and agreed to hand over more documents related to its acquisition of
, except for some material the bank deems protected by attorney-client privilege.
The committee had asked BofA to disclose all relevant information about its discovery of Merrill's mounting losses following a separate probe by New York Attorney General Andrew Cuomo and an inquiry by the
Securities and Exchange Commission
reported late Tuesday that Bank of America CEO Ken Lewis won't resign if he is slapped with civil charges from Cuomo, but he's likely to leave if he is charged by the SEC, according to sources inside the bank.
BofA shares slipped by 11 cents, or 0.6%, to close at $17.50.
Most other bank stocks finished lower Wednesday as well.
slid 2.8% to $4.52 and
was down 1% at $183.64.
lost 2% to $28.81 and
gave back 2.9% to $32.03.
American International Group
was among the winners Wednesday, adding 2%. AIG shares have been volatile over the past few sessions, rising Monday after the Government Accountability Office, which oversees the Troubled Asset Relief Program, said there are "signs of stabilizing" and "some progress," and falling Tuesday after
that the company should consider a secondary offering, stoking market chatter.
AIG shares advanced by 91 cents to end the day at $46.71.
On the other hand,
were declining on higher-than-average volume Wednesday.
Tuesday on the same optimism that has fueled the recent rally in AIG shares.
However, they retraced much of those gains. CIT sank 9.4% Wednesday to close at $1.65, Ambac retreated 6.9% to $1.75 and MBIA shares gave back 6% to $7.75.
-- Written by Robert Holmes in New York