Bank Stocks Plunge Amid Lawsuit Allegations
Bank stocks, including Bank of America and Citigroup, took a hit in pre-market trade, with losses of 2.5% and 3% respectively, as investors reacted to a Reuters report that seven banks, including the two titans, were sued by pension funds over the collapse of MF Global. The lawsuit alleges that the banks' bond offerings concealed problems that led to the collapse of the company. Deutsche Bank, Jefferies, Goldman Sachs, JP Morgan, and Royal Bank of Scotland were also named in the lawsuit. The banks' stocks were among the volume leaders in the financial space, with Bank of America's stock price plummeting 2.6% on the news.
Key Takeaways:
- Seven banks, including Bank of America and Citigroup, were sued by pension funds over the collapse of MF Global, alleging that the banks' bond offerings concealed problems that led to the collapse.
- The lawsuit names Bank of America, Citigroup, Deutsche Bank, Jefferies, Goldman Sachs, JP Morgan, and Royal Bank of Scotland as defendants.
- Bank of America's stock price fell 2.6% on the news, with the bank's stock price closing at $5.63.
- Comtex SmarTrend Alert indicated a UPTREND on 10-27-2011 for Bank of America, but a DOWNTREND on 11-10-2011 for Citigroup.
- Deutsche Bank's stock price fell on the news, with the bank's stock price closing at $38.15 on 11-01-2011.
Statistics:
- Bank of America's stock price fell 2.6% on the news, closing at $5.63.
- Citigroup's stock price fell 3% in pre-market trade on the news.
- Comtex SmarTrend Alert indicated UPTREND on 10-27-2011 for Bank of America.
- Comtex SmarTrend Alert indicated DOWNTREND on 11-10-2011 for Citigroup.
Sources:
- Reuters: "Pension Funds Sue 7 Banks Over MF Global Collapse"
- Bank of America: Stock price data
- Citigroup: Stock price data
- Comtex News Network, Inc.: SmarTrend Alert data, www.mysmartrend.com
- COPYRIGHT 2011 MIDNIGHTTRADER.COM. ALL RIGHTS RESERVED.