Wells Fargo: Financial Winners & Losers

Wells Fargo shares fell after the Treasury Department announced plans to sell 110.3 million warrants
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) --

Wells Fargo

(WFC) - Get Report

was among the losers of the financial sector Wednesday after the Treasury announced an auction of the bank's warrants.

Wells Fargo

slid 3% after the Treasury Department said it will auction approximately 110.3 million warrants it received from the bank as part of the Troubled Asset Relief Program, or TARP. Each warrant represents the right to purchase one share of Wells Fargo common stock at an exercise price of $34.01.

The auction will begin Thursday at 8 a.m. ET and will end at 6:30 p.m. ET, the Treasury said. The minimum bid price for each Wells Fargo warrant is $6.50.

Lately, Wells Fargo shares were down 91 cents, or 3%, to $29.68.

Among other U.S. bank stocks trading lower,

JPMorgan Chase

(JPM) - Get Report

was off 0.7% to $38.73,

Goldman Sachs

(GS) - Get Report

fell 0.6% to $136.50,

Morgan Stanley

(MS) - Get Report

retreated by 0.6% to $26.56, and

Bank of America

(BAC) - Get Report

slipped 0.5% to $15.87.

Bank of America

shares fell after a report the bank is planning to sell its 5.4% stake in Brazilian lender

Itau Unibanco

in a move that is expected to generate more than $4 billion in gross proceeds.

The Financial Times

reports that the sale will involve an offering of Bank of America's 188.5 million preferred shares in Itau Unibanco, expected to take place during the week of May 31, and the sale of 56.5 million shares to the Brazilian bank's controlling shareholder, Itau SA.

On the winning side,


(C) - Get Report

was up nearly 1% to $3.77.

FBR Capital Markets analyst Paul Miller said Wednesday that the Senate handed banks an "important win" Tuesday by scaling back the power of states to enact tougher consumer-protection laws and limiting the ability of states' attorneys general to take actions against national banks.

"The amendment scaled back the ability of states to enact consumer-protection laws that would interfere with the operations of national banks; and it limits enforcement actions by state attorneys general to existing statutes," Miller wrote in a research note.

In addition, Miller said bank "dodged a bullet" after the Senate rejected a ban on naked credit default swaps.

Dividend Stock Picks 6 Banks Stocks with a 4% Yield

German bank stocks were also in focus after the eurozone nation banned so-called naked short-selling of shares in some German financial institutions and in euro government bonds. Following the ban, the European Commission wants European governments to jointly act against short-selling of shares and investments,

The Associated Press


Among overseas bank stocks,

Royal Bank of Scotland

(RBS) - Get Report

shares in London fell 4%,


shares trading in Germany lost 3.5%, and

Deutsche Bank

(DB) - Get Report

shares trading overseas were down 3%.

Back in the U.S.,

Zions Bancorp

(ZION) - Get Report

fell 4.5% to $24.90 after the bank announced a public offering of warrants to acquire shares of common stock. Zion said it expects gross proceeds of $150 million. Zions said it intends to invest the net proceeds in interest-bearing investment grade securities.

-- Written by Robert Holmes in Boston


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