Financial Business: Bank Stocks Spike, Citigroup Settlement Smacked Down

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RBS (NYSE:RBS) is examining final bids for its aircraft leasing business. This could fetch up to $8B, Reuters reports. Those in the running for RBS Aviation Capital are China Development Bank, Wells Fargo (NYSE:WFC), Sumitomo Mitsui (NYSE:SMFG) and a Macquarie-led consortium (MQBKY.PK).

Bank of America (NYSE:BAC), Citigroup (NYSE:C), Goldman Sachs Group, Inc. (NYSE:GS), Morgan Stanley (NYSE:MS), JP Morgan Chase (NYSE:JPM), Deutsche Bank AG (DS), UBS AG (NYSE:UBS), Barclays PLC (NYSE:BCS), The Royal Bank of Scotland Group (NYSE:RBS), HSBC Holdings PLC (NYSE:HBC), and Lloyds Banking Group (NYSE:LYG) are all on the up and the STOXX Europe 600 Banks index is +5%. Shares in banks from both sides of the pond are having a fine time of it, apparently boosted by the latest attempts to stem the eurozone debt crisis.

Don’t Miss: Big Banks: We Earned Billions From Fed Bailout.

Genworth (NYSE:GNW) is the hottest stock on the S&P 500. Citigroup upgraded the mortgage insurer to Buy because of an “attractive relative valuation that… substantially over discounts the challenges the company faces.” There are concerns about a possible bankruptcy. As rival PMI Group struggled, Citi says bankruptcy is “not a realistic threat” to GNW.

Citigroup’s (NYSE:C) $285M settlement with the SEC over toxic mortgage debt is rejected. New York federal court judge Jed Rakoff said that it is “neither fair, nor reasonable, nor in the public interest.” A new trial is set for July 2012. Citigroup had agreed last month to settle an SEC claim. It misled investors in a $1B CDO linked to subprime residential mortgage securities.

Investing Insights: Are Physical Precious Metals Still in Demand?

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