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BREAKING NEWS FROM CNBC'S DAVID FABER: TEPPER'S APPALOOSA EXITS FINANCIALS

WHEN: TODAY, MONDAY, AUGUST 8TH

WHERE: CNBC'S "SQUAWK ON THE STREET"

Following is breaking news from CNBC's David Faber. All references must be sourced to CNBC.

Following is a link to Faber's story on CNBC.com: http://www.cnbc.com/id/44060085

FABER: WE'VE BEEN WATCHING ALL OF THE FINANCIALS THIS MORNING AS YOU WELL KNOW WITH SHARES OF CITI DOWN OVER 6% AND BANK OF AMERICA DOWN ALMOST AS MUCH AS 10%. WANTED TO FOLLOW-UP ON SOMETHING WE HAD BEEN MENTIONING EARLIER NAMELY HEDGE FUNDS BIG OWNERS OF THESE FINANCIALS AND BIG SUPPORTERS. ONE OF THOSE HAS BEEN APALOOSA RUN BY DAVID TEPPER. NOW THE NOTORIOUSLY QUIET SECRETIVE SO TO SPEAK TEPPER NOT HAVING ANYTHING TO SAY IN TERMS OF MY INQUIRIES. HOWEVER I CAN TELL YOU THAT I AM HEARING THAT THEY HAVE SOLD OUT OF ALL OF ITS BANK OF AMERICA SHARES. IT WAS A 17 MILLION SHARE POSITION LET'S CALL IT ON THE LAST 13 F'S SO AT THE END OF THE FIRST QUARTER AND SOLD ALL OF ITS WELLS FARGO AND IS ALSO SIGNIFICANTLY REDUCED ITS OWNERSHIP IN CITIGROUP AS WELL. MANY OF THESE NAMES HAD COMPRISED LARGE AMOUNTS OF HIS PORTFOLIO. HE WAS ONE OF THE MORE VOCAL PROPONENT OF FINANCIALS NOT THAT LONG AGO. IT APPEARS THAT TEPPER HAS THROWN THE TOWEL IN AT LEAST FOR NOW ON A NUMBER OF THESE BIG NAMES INCLUDING BANK OF AMERICA, WELLS FARGO AND I AM TOLD AS WELL THAT HE IS SELLING A LOT OF HIS OWNERSHIP IN CITI OF COURSE AS A PERCENTAGE OF THE PORTFOLIO THEY DECLINE AS THE DECLINE IN PRICE WE SHOULD POINT THAT OUT INTERESTING TO NOTE THAT GIVEN WE WERE WONDERING ABOUT SOME OF THOSE LARGER HEDGE FUNDS OF COURSE PAULSON BEING ONE OF THE KEY OWNERS OF BANK OF AMERICA AND CITI AND BRUCE BERKOWITZ NOT A HEDGE FUND FAIRHOME THE MUTUAL FUND ON BANK OF AMERICA.

MELISSA LEE: SEEMS LIKE AN INTERESTING TURNAROUND CONSIDERING THAT JUST IN FEBRUARY TEPPER ACCORDING TO A FILING ACTUALLY INCREASED STAKE IN BANK OF AMERICA BY 12%. OBVIOUSLY THESE ARE ALL DELAYS BECAUSE THESE ARE QUARTERLY FILINGS BUT INCREASING BY 12% WHICH IS SIZABLE ONE QUARTER AND THEN TWO QUARTERS LATER OR SO --

FABER: ALTHOUGH AS OF THE LAST TIME WE CHECKED, HIS LAST 13F CITI WAS TOP HOLDING REDUCING THE STAKE BY 4 MILLION SHARES ANDS OLD 7 MILLION SHARES OF BANK OF AMERICA THEN. I'LL TELL YOU AT THIS POINT HE'S OUT ENTIRELY. BANK OF AMERICA AND WELLS FARGO WHICH WAS A SMALLER POSITION AS YOU SEE SHARES OF BANK OF AMERICA HAVING A VERY DIFFICULT DAY OF IT. GIVEN AIG NEWS, THAT'S NOT HELPING.

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