Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS) are in the lead in Facebook’s expected initial public offering for 2012 with regard to the I-banking role. Hundreds of millions of dollars in potential fees, as well as bragging rights are at stake.

Investing Insights: The Biggest Losers of the Year: Financials.

Bank of America (NYSE:BAC) looks set to be the Dow Jones Industrial Average’s biggest loser of the year, heading into the last trading day of 2011. Down 59% year-to-date, the bank has been beset by mortgage losses, new regulations, lack of confidence in management and the broader economic slowdown. On opposite ends of the spectrum, the DJIA is up 6.1% year-to-date while the KBW Bank Index is down 24%.

Banco Bradesco (NYSE:BBD), Brazil’s third-biggest bank, reportedly gives up buying the Brazilian consumer finance unit of HSBC Holdings (NYSE:HBC) after offering $322 million. Its offer was too low. As well, the two lenders didn’t agree on who should assume the risk of paying labor penalties, says a Brazilian newspaper.

JP Morgan (NYSE:JPM) and Ally Financial (ALLY) are being sued. German lender HSH Nordbank AG is the offender of the two over losses on about $293 million in mortgage bonds.

Don’t Miss: The Dogs of the Dow Retrieve Returns for Owners.

To contact the reporter on this story: Tanya Harding at staff.writers@wallstcheatsheet.com

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

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