Bank Stocks Swung To Losses Today, Led By Subpoena Against GS

Learn how to find the best stocks to trade each day in our 70 page E-Book and 90 minute online video for free. US bank stocks entered the negative territory today on news about Goldman Sachs Group Inc GS being subpoenaed by a government commission probing the credit disaster that almost halted the financial system. By 1:17 pm, Financial Select Sector SPDR Fund XLF had dropped 0.07% to $14.14. The fund declined 4% on Friday, as stocks rocked last week led by poor May job report and a falling euro. The Financial Crisis Inquiry Commission (FCIC) has subpoenaed Goldman Sachs GS after the bank failed to give documents and interviews requested by the commission on time. In the month of April, GS faced SEC charges for allegedly committing fraud by restructuring and selling investment products that misrepresented facts. By 1:29 pm, the stock had declined 0.67% to $141.29. It is off 16% year to date. Some of the financial stocks that gained today include MasterCard Inc MA, which was up 3.63% by 1:32 pm, and Legg Mason Inc LM, which jumped 3.07%. One of the directors of LM, Nelson Peltz, has again raised his stake in the company. As far as bank stocks go, both Bank of America Corp BAC and Citigroup Inc C were down today, with BAC off 1.37% and C lower 1.19%. The Federal Trade Commission (FTC) declared today that BAC will give $108 million to clear up charges of its Countrywide unit collecting extra fees from borrowers trying hard to retain their homes. By 1:41 pm, American International Group Inc AIG declined 1.29% to $34.32. Read more from Benzinga's Markets.