Regional banks are also moving into positive territory as more banks prepare for 2011 by repurchasing preferred stock still held by the Treasury. While several banks have had to issue common equity in order to maintain capital levels once the government shackles are broken, the market seems to be in a giving mood. Midsize and small banks including Huntington Bancshares ( HBAN), Webster Financial ( WBS), Susquehanna Bancshares ( SUSQ) and Heritage Financial ( HFWA), have either announced or completed TARP repurchases this week.
Elsewhere in the financial sector this week, outgoing New York Attorney General and governor-elect Andrew Cuomo is suing Ernst & Young over its role as auditor to Lehman Bros. Cuomo alleges that Ernst & Young assisted Lehman in "engaging in an accounting fraud involving the surreptitious removal of tens of billions of dollars of fixed income securities from Lehman's balance sheet in order to deceive the public about Lehman's true liquidity condition."
Deutsche Bank ( DB) paid $550 million to U.S. regulators and entered into agreements with the U.S. Justice Department and the Internal Revenue Service to settle a tax-shelter probe related to client transactions from 1996 to 2002.