4 Financial Stock Stories to Close a Busy Trading Week

Citigroup Inc. (NYSE:C): Current price $52.22

During a Friday call with fixed-income analysts, Citi Chief Financial Officer John Gerspach opined that investors might abandon shares of U.S. banks, should the industry’s return on equity fail to improve. The executive remarked,“If you take a look at the return on equity that most financial institutions are producing these days, there’s reason to think that the profitability is really not enough to sustain continued investor involvement.” Since the financial crisis, return on equity for a number of companies has fallen to under 10 percent, while capital levels increased, and legal costs and stalled economic growth impacted earnings. At the end of June, Citigroup’s ROE stood at 8.8 percent, said the bank’s second quarter financial supplement, down from 20.1 percent for the same period back in 2007.

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Goldman Sachs Group (NYSE:GS): Current price $164.01

The ex-Goldman Sachs board member Rajat K. Gupta has received an additional penalty of $13.9 million from the U.S. District Court for the Southern District of New York, according to the Securities and Exchange Commission, in punishment for his crime of “illegally tipping corporate secrets to former hedge fund manager Raj Rajaratnam.” The Motley Fool reports that this week’s penalty is distinct from the $92.8-million penalty that was levied at Rajaratnam on November 2011. The new penalty is in addition to the October 2012 two-year sentence of jail time, the $5 million fine imposed on Gupta, and a December 2012 order of the disgorgement of profits.

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Visa Inc. (NYSE:V): Current price $190.05

Visa and NetHope, which is a consortium comprised of over 40 humanitarian organizations, has announced the five recipients of the Visa Innovation Grants Program. The grants will assist development organizations modernize the distribution of payments in connection with agriculture, microfinance, health, and emergency relief. By means of the Visa Innovation Grants Program, Visa is awarding $500,000 in grants to further the long-term impact of development programs, through the innovation and adoption of electronic payments. The program is being delivered in conjunction with NetHope, which backs collaboration among  top international humanitarian organizations, in order to address, create, and implement scalable tech solutions to assist the developing world.

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Deutsche Bank (NYSE:DB): Current price $46.04

On Friday, Deutsche Bank announced its being named as depositary bank for the non-capital raising sponsored Level I American Depositary Receipt program of Coca-Cola İçecek A.Ş. (Coca-Cola İçecek), based in Turkey. Coca-Cola İçecek is the number six bottler in the Coca-Cola system based on sales volume. The firm’s core business is the production, sales, and distribution of Coca-Cola Company beverages.

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