Updated with final stock price movements
NEW YORK (
was one of few winners in the financial sector Friday after the bank announced a succession plan that would see John Mack relinquish the role of CEO.
shares rose 18 cents, or 0.6%, to $28.82 after the bank late Thursday said CEO John Mack will step down from the position at the end of the year, with co-President James Gorman set to take the reins. Mack will retain his title of chairman.
Rochdale Securities analyst Dick Bove called Morgan's succession plan "a positive change" in a research note. "Most important, Mr. Gorman might be able to reduce the turmoil in management that has now characterized this company for a decade," Bove wrote. "This change is a plus for the company and a plus for the stock."
Other bank stocks were trading lower Friday.
Bank of America
was down 1.5%,
lost 1.2% and
Goldman's decline comes even after Citigroup analysts raised their stock price target for the bank to $215 from $175 in order to account for strong capital markets activity, declining systemic risks, and an improving deal pipeline. Citi also upped their estimates as the firm sees sizeable upside to consensus estimates.
was also among the day's decliners after Wells Fargo analyst John Hall cut the stock to underperform from market perform, arguing that the troubled insurer has practically no book value and shares are overpriced.
The Wall Street Journal
reports that the Justice Department and the
Securities and Exchange Commission
have been investigating whether
, the former head of AIG's Financial Products unit, committed securities fraud in allegedly misleading investors by overstating the value of mortgage-related contracts and failing to disclose material facts about them to the insurer's outside auditor.
AIG shares ended the session down 30 cents, or 0.8%, to $37.55. Other insurers were mixed Friday, with
sliding 1.5% and
tacking on 0.8%.
In financial-related news, Treasury Secretary Timothy Geither told a town hall meeting organized by
that bankers' pay should be tied to long-term performance and could be clawed back if the company's financial performance did not hold up.
"You want compensation to come substantially in the form of equity in the firm that vests over time, that is at risk, that can be clawed back if returns don't materialize," Geithner said, according to a
-- Written by Robert Holmes in New York