4 Financial Stock Stories to End the Trading Week

Lloyds Banking Group (NYSE:LYG): Current price $3.73

On Friday, Lloyds said that it will divest a portfolio of American residential mortgage backed securities to several different institutions for a cash amount of 3.3 billion euros. The transaction forms part of the Group’s continued capital accretive non-core asset reduction. These assets have a book value of about 2.7 billion euros, upon completion of the transaction Lloyds will realise a pre-tax gain on sale of roughly 540 million euros. The proceeds will be used for general corporate purposes.

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LYG

Morgan Stanley (NYSE:MS): Current price $25.90

Analyst Matt O’Connor at Deutsche Bank says that Morgan Stanley’s “earnings momentum is poised to accelerate,” as he late on Thursday upgraded the investment bank’s shares to Buy from Hold. Prior to this, Morgan Stanley announced its intentions to buy its remaining 35-percent interest in its retail brokerage joint venture with Citigroup, and is awaiting a Federal Reserve okay to complete the transaction, which might come “any day,” said O’Connor., who added that having the full revenue stream from the joint partnership will reinforce Morgan Stanley’s earnings, as will the ongoing increase in equity prices.

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MS

National Bank of Greece (NYSE:NBG): Current price $7.22

The biggest lender in Greece has on Friday introduced an offer to repurchase its United States-listed ADS preference shares for an aggregate of $281 million. The bank is offering to buy back as much as 22.5 million American Depository Shares out of the 25 million outstanding at $12.50 apiece, at a 50-percent discount to their nominal value, according to an official at the bank. Each ADS corresponds to one preferred bank share. The play will boost the bank’s Core Tier 1 capital by 1228 million, if all of the securities are tendered. The expiry date is June 28th, with settlement expected on July 3th.

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NBG

The Royal Bank of Scotland Group (NYSE:RBS): Current price $10.23

RBS has cut its list of bidders for the 316 branches it has been forced to divest by European regulators. It is said that the partly-nationalized bank has advised J.C. Flowers and its partner, Apollo Global, that their joint proposal was unsuccessful. The buy-out group Apollo and J.C. Flowers has been led by the former Goldman Sachs banker Chris Flowers. In March, Bank of England’s Financial Policy Committee said that the United Kingdom banking sector had a 25 billion euro capital deficit, and it was widely thought that about £9 billion of that would be attributable to Royal Bank of Scotland Group and Lloyds Banking Group.

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RBS

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