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NEW YORK ( TheStreet) -- Citigroup ( C) stock shed 1.9% to $4.08 on Wednesday after Moody's Investor Services cut its outlook on some of the nation's biggest banks on concerns that Dodd-Frank regulation will result in lower government support for banks. The ratings firm affirmed its long- and short-term ratings but cut the outlook on Bank of America ( BAC), Wells Fargo ( WFC) and Citigroup to negative from stable. Moody's estimates that these banks' deposit and debt ratings are inflated by 3 to 5 notches, because of implied government support. But the new regulation may not be pro-banks. The stock of Bank of America shed 1.3%, or 18 cents, to end the session at $14.01. Wells Fargo was lower by 1.1%, or 32 cents, at $28.07 at the end of trading hours on Wednesday. Moody's also placed ratings of 10 regional banks under review for similar reasons, including BB&T ( BBT), which shed 2% to $25.56, Fifth Third ( FITB), down 2.9% to $12.76, and KeyCorp ( KEY), which inched up higher by 0.5% at $8.46.
Trading was quiet in Goldman Sachs ( GS) which ended flat, while Morgan Stanley ( MS) ended marginally positive. Hudson City Bancorp ( HCBK) was a major gainer among the regional banks earlier in the trading session, rising 2.2% to $12.47 before cooling off to $12.43. The bank announced results last week and beat estimates. Private Bancorp ( PVTB) jumped 4.2% to $12.60 after it reported a narrower-than-expected loss in the second quarter.
The stock of Visa ( V) is up 1.4% in extended trading at $76.06. The payment processor announced after the closing bell that it beat estimates by 4 cents. Global Payments ( GPN) was among the worst losers on Wednesday, sinking 10.4%, or $4.00, to $35.93 before recovering some of its losses to end lower by 8.5% at $36.55. The company missed estimates and issued a profit guidance that was lower than estimates. East West Bancorp ( EWBC) was another prominent loser, plunging more than 11% to $15.74, on confusion over its guidance. -- Reported by Shanthi Venkataraman in New York. Follow TheStreet.com on Twitter and become a fan on Facebook.