Financial Sector Review: WellCare’s Membership Up, U.S. Files and Settles Citimortgage Suit

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WellCare Health Plans (NYSE:WCG): Membership as of December 31, increased 15% year over year to 2.6M compared with 2.2M members as of December 31, 2010. PDP segment membership increased 208,000 year over year, or 27%. Medicare Advantage membership increased year over year by 19,000 members, or 16%. Medicaid segment membership increased by 111,000, or 8%, year over year to 1.5M members as of December 31, 2011

The shares closed at $68.74, up $5.78, or 9.18%, on the day. Its market capitalization is $2.94 billion.

Bank of America Corp (NYSE:BAC): Goldman Sachs Group (NYSE:GS) and Morgan Stanley (NYSE:MS) warned U.S. regulators that a proposed ban on proprietary trading could make the financial system more risky and curtail services for clients, reports Bloomberg.

The shares closed at $7.78, down $0.2, or 2.51%, on the day. Its market capitalization is $81.97 billion.

Citigroup Inc. (NYSE:C): Preet Bharara, the United States Attorney for the Southern District of New York, announced that the United States has filed, and simultaneously settled, a civil fraud lawsuit against Citimortgage, a subsidiary of Citibank. In the settlement, Citimortgage admits, acknowledges, and accepts responsibility for certain conduct alleged in the Complaint including, [failing] to comply fully with all HUD-FHA requirements with respect to certain loans, and [submitting] to HUD-FHA certifications stating that certain loans were eligible for FHA mortgage insurance when in fact they were not. Citimortgage also admitted that, as a result of its conduct, HUD incurred losses when certain loans that should never have been endorsed defaulted and agreed to pay $158.3M to the United States in damages under the False Claims Act.

The shares closed at $31.72, down $0.36, or 1.12%, on the day. Its market capitalization is $92.75 billion.

JPMorgan Chase & Co. (NYSE:JPM): Canada’s Competition Bureau is investigating the Canadian affiliates of five foreign banks, in addition to a U.K. brokerage firm, as part of an investigation of how banks set key interest rates, reports the Wall Street Journal. The banks targeted are HSBC Holdings (NYSE:HBC), Royal Bank of Scotland Group (NYSE:RBS), Deutsche Bank (NYSE:DB), J.P. Morgan Chase (NYSE:JPM) and Citigroup (NYSE:C). The brokerage firm is ICAP Capital Markets, a unit of ICAP PLC (IAPLY).

The shares closed at $37.40, down $0.52, or 1.37%, on the day. Its market capitalization is $141.10 billion.

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