Citi Edges Past JPMorgan; Goldman Sachs Fined for Options Trades: Finance Winners & Losers

NEW YORK (TheStreet) -- Though there is still much uncertainty in the markets over Greece and Puerto Rico, the S&P 500 -- and bank stocks specifically -- recouped some of their losses from Monday.

Citigroup (C) has officially overtaken JPMorgan Chase (JPM) to become the largest U.S.-based derivatives dealer, Goldman Sachs (GS) was fined $7 million by the SEC, and Bank of America (BAC) still grapples with Countrywide Financial's loans.


Citigroup narrowly beat JPMorgan to become the largest U.S.-based derivatives dealer, according to data released by the Office of the Comptroller of the Currency on Monday. Citigroup's derivative contracts totaled $56.6 trillion at the end of the first quarter, while JPMorgan's totaled $56.2 trillion, and Goldman Sachs ranked third at $52 trillion.

Citigroup is in the middle of rebuilding its trading business after the financial crisis caused significant losses for the bank, according to Bloomberg. Part of the effort includes delving deeper into derivatives trading -- a business Warren Buffett once said dealt in "financial weapons of mass destruction."

Citigroup rose 0.6% to $55.23 and JPMorgan gained 0.9% to $67.77.


Elsewhere in the land of derivatives, Goldman Sachs was fined $7 million by the SEC for lacking safeguards that would have prevented 16,000 mispriced options orders from hitting the market on Aug. 20, 2013. The error is said to be the result of a software issue and Goldman Sachs not having proper policy and procedures in place for implementing software changes.

"Firms that have market access need to have proper controls in place to prevent technological errors from impacting trading," said Andrew Ceresney, director of the SEC Enforcement Division, said in a statement. "Goldman's control environment was deficient in several ways, significantly disrupted the markets, and failed to meet the standard required of broker-dealers under the market access rule."

Goldman Sachs gained 0.6% to $208.84.


Bank of America is said to be looking to reduce -- or even eliminate -- a $1.27 billion penalty it faces due to Countrywide Financial's sale of mortgage loans to Fannie Mae and Freddie Mac, according to analysis by Bloomberg.

The bank bought Countrywide in early 2008 as the financial crisis loomed. It has been a costly acquisition for the Charlotte, N.C.-based bank, which has grappled with a mix of non-performing loans and fines for Countrywide's faulty lending policies. In 2014, the Charlotte Observer reported that Countrywide had cost Bank of America more than $50 billion.

Shares of Bank of America closed up 0.8% at $17.02.

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