NEW YORK (TheStreet) -- Financial stocks were mostly higher Wednesday, with Citigroup (C Quote) among the top performers after reports the bank would unload several consumer finance businesses. Citigroup CEO Vikram Pandit told Singapore's Business Times that the bank plans to sell 20 businesses in the consumer finance area. Many of the businesses are located in Europe, the report said.
Rochdale Securities analyst Richard Bove said the sale of the bank's consumer units is a positive and shows Citigroup is continuing to pursue its liquidation strategy.
"To the degree that the bank can divest itself of these operations, it will reduce its loan loss provision and its borrowing costs," Bove wrote in a research note. "If the divisions cannot be sold they will simply be shut down and liquidated. In either case it will be a positive event for the company."
Citigroup shares were climbing 20 cents, or 6.2%, to $3.45. Among other winning bank stocks Wednesday, Bank of America (BAC Quote) was up 5.4% to $16.48, JPMorgan Chase (JPM Quote) added 3.8% to $41.75 and Wells Fargo (WFC Quote) rose 2.9% to $27.27. |