4 Financial Stock Stories For Savvy Investors

HSBC Holdings (NYSE:HBC): Current price $55.71

New York Attorney General Eric Schneiderman claims that HSBC violated New York foreclosure law and placed homeowners at a greater risk of losing their homes, and said Tuesday that he is suing the bank. A state investigation revealed that HSBC has left homeowners in foreclosure by not meeting requirements for giving them a chance to negotiate loan modifications, said Schneiderman’s office. This lawsuit is brought as state attorneys general across the United States have targeted banks over foreclosure practices, in 2012 coming to a $25-billion settlement with five mortgage servicers, among which included Bank of America Corp. and Wells Fargo & Co. However, HSBC was not part of that settlement.

Are these stocks a buy or sell? Let us help you decide. Check out our Stock Picker Newsletter now.

HBC

American Realty Capital Properties (NASDAQ: ARCP): Current price $15.50

On Tuesday, the firm said that it will divest around 29.4 million shares of common stock at a price of $15.47 per share, for aggregate proceeds of $455 million, and roughly 28.4 million shares of 5.81 percent convertible preferred stock, with a total liquidation preference of $445 million, in separate private placement transactions. Net proceeds of about $898 million will be used to fully fund working capital requirements and recently reported strategic purchases, including a $807 million property portfolio being bought from GE Capital and the $2.2 billion acquisition of CapLease.

Are these stocks a buy or sell? Let us help you decide. Check out our Stock Picker Newsletter now.

ARCP

American International Group (NYSE:AIG): Current price $43.99

AIG,  Prudential Financial (NYSE:PRU), and a division of General Electric Co. were called out by United States regulators as potential risks to the financial system, closer to putting the firms under more robust government scrutiny. In statements issued Monday, AIG and Prudential, subsequent to a meeting of the Financial Stability Oversight Council, said they were advised of the proposed designations. GE Capital Spokesman Russell Wilkerson reported in an e-mail that his firm also received a notice. AIG, Prudential and GE Capital had previously reported that they were in the final stage of review.

Are these stocks a buy or sell? Let us help you decide. Check out our Stock Picker Newsletter now.

AIG

Newcastle Investment Corp. (NYSE:NCT): Current price $5.30

Newcastle announced Tuesday that it has finalized the sale of the entirety of the assets in Newcastle CDO IV. The corporation sold $153 million face amount of collateral at an average price of 95 percent of par, or $145 million. The divestiture will result in $77 million of third-party debt being paid off at par and the termination of the trust. Newcastle directly holds roughly 50 percent of CDO IVs capital structure. This transaction will generate around $68 million of proceeds to Newcastle, which will recover par on $60 million of CDO debt which had been previously repurchased at an average price of 52 cents, and $8 million of proceeds to its subordinated interests. The firm expects the final distribution of funds from CDO IV to occur on or around June 24.

Are these stocks a buy or sell? Let us help you decide. Check out our Stock Picker Newsletter now.

NCT

Don’t Miss: Here’s Why Investor Panic Was Halted.

More from The Cheat Sheet