Wells Fargo Hit by Credit Woes

Elsewhere, shares of KeyCorp(KEY Quote) dropped 4% after the Cleveland bank reported third-quarter profit dropped 33% from a year ago as the summer's credit crunch crimped trading results.

"The fixed-income market volatility had an adverse impact on our third-quarter results," said CEO Henry L. Meyer III. "While the fixed-income markets continue to remain under some pressure as we head into the fourth quarter, we believe most of the financial impact on our held-for-sale portfolios is behind us and we expect to see improved results from these portfolios over the remainder of the year.

Key also guided lower for the fourth quarter, saying it expects to make 68 to 74 cents a share, against a 75-cent Thomson Financial estimate.