US SMALL/MIDCAPS – Banks fall on Goldman charges

By Rodrigo Campos

NEW YORK, April 16 (BestGrowthStock) – The plunge in Goldman Sachs’ shares after
the bank was charged with fraud erased more than $12 billion in the bank’s
market capitalization — more than the total market cap of many small banks
combined, most of which were hit hard on Friday.

Those shares ranked among the top decliners on Friday in the small- and
midcap financial shares.

Goldman’s stock fell almost 13 percent after the U.S. Securities and
Exchange Commission alleged fraud in Goldman’s structuring and marketing of a
debt product tied to subprime mortgages, which cost investors more than $1
billion. Goldman denied the charges. For details see [ID:nN16131161]

For instance, Synovus Financial Corp (SNV.N: ), which has a market cap of
$1.87 billion, lost 7.6 percent to $3.52, leading declines among the Midcap
Financial sector (.4GSPF: ), which lost 2 percent.

Sterling Bancshares Inc (SBIB.O: ), a $510 million market cap company, fell
6.7 percent to $5.82, part of a 1.9 percent drop in the S&P smallcap financial
sector (.6GSPF: ).

Despite their declines, both fared better than the financial sector of the
S&P 500 (.GSPF: ), which was down 3.8 percent.

Michael Sheldon, chief market strategist at RDM Financial in Westport,
Connecticut, noted that the outperformance of the smaller stocks was a good
sign for the market.

“If the small and midcaps continue to hold in on a relative basis, I’d take
that as an indication investors remain bullish,” he said.

The S&P MidCap 400 index (.MID: ) fell 1.2 percent while the S&P SmallCap 600
index (.SML: ) dropped 1.1 percent. In comparison, the benchmark S&P 500 (.SPX: )
lost 1.61 percent.

Small and midcaps still ended Friday with a seventh straight week of gains
and have outperformed the S&P 500 in four of the last five quarters.

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US SMALL/MIDCAPS – Banks fall on Goldman charges