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Financials Fall as Fed Raises Interest Rates -- Financials Roundup

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06/14/2018 | 02:08 am


Shares of financial firms ended the day lower but gained some ground after the Fed said it will raise interest rates by another quarter-percentage point and signaled it could lift them at a slightly faster pace this year to keep a strengthening economy on an even keel. Higher interest rates typically widen the spread between what banks charge on loans and what they pay on deposits. However, the S&P 500 real-estate sector, which includes real-estate investment trusts that often suffer when interest rates rise, fell, extending declines. The remnant of Lehman Brothers Holdings settled a $1.2 billion derivatives lawsuit with Credit Suisse Group AG, wrapping up one of the last remaining big legal battles involving the failed investment bank. Creditors will recover about $280 million on Credit Suisse's derivatives claims against Lehman, according to a Wall Street Journal analysis of bankruptcy court filings. But most of that cash is earmarked for other investors, mainly hedge funds, because the Swiss bank doesn't own most of the claims. Greystar Real Estate Partners LLC is in exclusive talks to buy student-housing owner Education Realty Trust Inc. for about $3.1 billion, according to people familiar with the matter. Closely held Greystar offered $41.50 a share for Education Realty, although it is possible that price could change before a deal announcement.([email protected])






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