Bank of America: Financial Winners & Losers

NEW YORK ( TheStreet) -- Bank of America ( BAC) and a handful of other bank stocks traded lower Friday after a firm cut estimates for the first quarter.

Goldman Sachs lowered first-quarter estimates on major banks with capital markets exposure by an average of 15% due to a "choppy start" to 2010.
Bank of America

Goldman Sachs cut estimates for Bank of America and JPMorgan Chase ( JPM), both of which are on the firm's conviction buy list, as well as Morgan Stanley ( MS), Jefferies ( JEF) and Piper Jaffray ( PJC).

Goldman Sachs was still upbeat on its outlook for 2010, with analysts saying they continue to have a positive view on the outlook for capital markets activity despite a weak February.

Still, that wasn't enough to buoy shares of the bank stocks. Bank of America was down 1.8% to $16.77, JPMorgan was off 0.9% to $43.24, and Morgan Stanley slipped 0.7% to $29.87.

Meanwhile, Jefferies shares were sliding 2.3% to $26, and Piper Jaffray was down 2.3% to $43.89.

In other financial sector news, Federal Deposit Insurance Corp. Chairman Sheila Bair said Friday that she has "serious concerns" about the financial reform plan being crafted by the Senate.

Bair's concerns stem from what she says are too many potential loopholes for "backdoor bailouts." She added that banks should be kept from being able to grow "too big to fail."

Among other financial stocks trading lower Friday, Citigroup ( C) fell 1.7% to $3.95, American International Group ( AIG) lost 1.6% to $34.08, Goldman Sachs ( GS) slid 0.8% to $176.10, and Wells Fargo ( WFC) slipped 0.7% to $30.07.

Winners of the financial sector Friday included Lloyds Banking Group ( LYG), said its banking net interest margin "is trending in line with recent guidance and this has supported a good level of income growth" and that it expects to be profitable in 2010.

Lloyds added that costs remain under control and impairment provisions are trending lower than expected.

Lloyds shares were up 7.6% to $3.67. Other European bank stocks followed higher, with Royal Bank of Scotland ( RBS) up 2.6% to $13.22 and Allied Irish Bank ( AIB) higher by 1.7% to $4.19.

-- Written by Robert Holmes in Boston.

Follow Robert Holmes on Twitter and become a fan of TheStreet.com on Facebook.