Stifel Financial Corp (SF.N) on Monday said second-quarter profit fell 84 percent as high legal and acquisition costs cut into profits from the firm's growing retail brokerage and investment banking operations. An ongoing lawsuit related to the sale of collateralized debt obligations to five Wisconsin school districts eroded revenue that grew in most areas of the company. Stifel said it agree to repurchase notes from the schools with a face value of $162.5 million at a significant but undisclosed discount. The firm said charges it took during the second quarter should cover future litigation costs as well those from a related regulatory investigation into the CDO sales. Stifel is suing Royal Bank of Canada (RY.TO), which underwrote the securities.
Stifel Financial Corp is a financial holding company. Shares of SF fell by 9.93% or $-3.25/share to $29.48. In the past year, the shares have traded as low as $28.72 and as high as $49.94. On average, 658567 shares of SF exchange hands on a given day and today's volume is recorded at 1448103.
Royal Bank of Canada (RBC) is a diversified financial services company. Shares of RY fell by 4.64% or $-2.37/share to $48.69. In the past year, the shares have traded as low as $46.04 and as high as $63.59. On average, 731486 shares of RY exchange hands on a given day and today's volume is recorded at 1893378.
