Federal Regulators May Sue Major U.S. Banks

The Securities and Exchange Commission may sue some major U.S. banks and institutions related to the sale of mortgage bonds that helped lead to the 2008 financial crisis. At issue is whether the banks sold these mortgage securities in the full knowledge that these bonds were of much worse quality than advertised.

The SEC is expected to send Well Notices, which informs banks that they may be targeted for a lawsuit. Among the banks expected to receive Well Notices are Bank of America (NYSE:BAC), Goldman Sachs (NYSE:GS), Deutsche Bank (NYSE:DB) and Citigroup (NYSE:C).

Here’s how these banks recently traded:

Bank of America Corporation (NYSE:BAC): BAC shares recently traded at $8.13,. They have traded in a 52-week range of $4.92 to $14.95. Volume today was 2,687,417 shares versus a 3-month average volume of 274,814,000 shares. The company’s trailing P/E is 813.00, while trailing earnings are $0.01 per share.

The Goldman Sachs Group, Inc. (NYSE:GS): GS shares recently traded at $116.15,. They have traded in a 52-week range of $84.27 to $169.90. Volume today was 15,260 shares versus a 3-month average volume of 7,532,100 shares. The company’s trailing P/E is 25.75, while trailing earnings are $4.51 per share.

Deutsche Bank AG (NYSE:DB): DB shares recently traded at $46.26,. They have traded in a 52-week range of $28.57 to $66.00. Volume today was 7,300 shares versus a 3-month average volume of 2,764,660 shares. The company’s trailing P/E is 8.11, while trailing earnings are $5.70 per share.

Citigroup, Inc. (NYSE:C): C shares recently traded at $34.23,. They have traded in a 52-week range of $21.40 to $49.60. Volume today was 167,956 shares versus a 3-month average volume of 52,570,800 shares. The company’s trailing P/E is 9.27, while trailing earnings are $3.69 per share.

To contact the reporter on this story: Scott Gillette at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com