Financial Business Update: Wells Fargo’s WARNING, AIG SURVIVES Share Offering
Wells Fargo & Co. (NYSE:WFC) shares moved down modestly as Chief Financial Officer Tim Sloan predicted that the currently narrow net interest margin could slip further in the third quarter, as higher yielding securities run off in he face of strong deposit inflows. Sloan’s comments were from the Barclays’ Financial Services Conference.
Shares of Legg Mason Inc. (NYSE:LM) take off on the news that Chief Executive Mark Fetting is leaving the building, as certain indications had it that he was helped through the door. Fetting assumed the position in January 2008, and proved effective at reducing costs, but it is now felt that different leadership is required as the company concentrates upon growth, says Chief Financial Officer Pete Nachtwey.
The underwriters in the United States Treasury’s 553.8 million share offering of American International Group Inc. (NYSE:AIG) have exercised their option to buy an additional 83.1 million shares, which takes the total proceeds for the government to $20.7 billion. Shares of AIG are up a small amount on the day, and have not fallen below the $32.50 offering price.
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