Market Overview

Starwood Property Trust, Inc. Up On Report That Probe Rumor Is False

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Shares of Starwood Property Trust (NYSE: STWD) spiked higher Wednesday after a rumor on investigation of the company was refuted.

According to Bloomberg, a New York State Department of Financial Services spokesperson stated that reports of a probe into CMBS loan services are inaccurate.

On Tuesday, Reuters cited anonymous sources claiming Starwood’s mortgage servicing unit was the target of bank regulators. Shares tumbled more than 3.5 percent on the news. Keefe Bruyette & Woods' Jade J. Rahmani said a regulatory investigation into the industry might produce "an overhang" for Starwood.

Shares of Starwood are up about one percent on the Bloomberg report, last trading at $23.16.

Posted-In: Bloomberg ReutersNews Rumors M&A

 

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