4 Financial Stock Stories to Close Out the Trading Week

The Goldman Sachs Group Inc. (NYSE:GS): Current price $158.51

Moody’s Investors Service, which is the credit rating unit of Moody’s Corp., has put under review for a downgrade the senior and subordinated debt ratings of four major United States banks: Golkdman Sachs, Wells Fargo & Company, JPMorgan Chase & Co., and Morgan Stanley. The reason for the review is said to be a modification in federal policies to support troubled banks. Regulators intend to build liquidation plans through which domestic banks may fend off another financial crisis and  Moody’s believes that the level of government support might be lower versus the bailout of banks owing to financial crisis in 2008.

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BB&T Corp. (NYSE:BBT): Current price $35.73

On Friday, the Federal Reserve said that it would not object to a new 2013 capital plan submitted by BB&T Corp. after the bank’s initial plan was turned down earlier this year. The big banks must submit their plans to repurchase shares or pay dividends to shareholders to the Fed for each year, forming a part of the regular tests of the firms’ health. Subsequent to the financial crisis, regulators starting subjecting banks to regular testing and the 2010 Dodd-Frank law expanded the drill.

The Fed turned aside a submission by BB&T back in March, but the bank said Friday that it submitted its new plan in June and would maintain the current quarterly dividend of 23 cents per share as well.

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American Capital, Ltd. (NASDAQ:ACAS): Current price $13

American Capital announced Friday that its portfolio firm Pan Am Holdings, Inc. and its subsidiaries, including Pan Am International Flight Academy, Inc., were divested to ANA Holdings Inc., the parent company of All Nippon Airways Co. Ltd.  American Capital and its affiliated funds received $94 million in debt and equity proceeds and received a gain of $12 million from the transaction, subject to post-closing adjustments.

Out of the total proceeds, American Capital received $79 million, a gain of $7 million from the transaction. American Capital’s compounded annual rate of return earned on its debt and equity securities over the life of its investment came to 16 percent, including interest, gains, and fees.

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The Blackstone Group (NYSE:BX): Current price $21.91

La Quinta Inns & Suites has added three new executives to its board, a disclosure that emerges weeks after reports that owner Blackstone Group is examining both a private sale and a possible public offering of the hotel chain. Earlier in August, The Wall Street Journal reported that Blackstone values the limited service hotel operator at about $4.5 billion, including debt. The firm bought it for $2.3 billion, excluding about $800 million in debt, in 2006 and spent hundreds of millions of dollars to upgrade, expand, and promote the chain.

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