Monday's Financial Winners & Losers

Falling profits at Bank of America(BAC Quote) and a dilutive equity offering at National City(NCC Quote) dragged down many bank stocks Monday.

The Charlotte, N.C.-based bank, which is set to acquire mortgage lender Countrywide Financial (CFC Quote) in the third quarter, said profit fell 77% to or $1.21 billion for the first quarter, vs. $5.26 billion in the year-ago period. Trading losses and an increase in reserves for problem loans led to the slide. BofA stock fell 2.5% to close at $37.61, a loss of 95 cents, while Countrywide slipped 2.5% to $5.54.

Cleveland-based Nat City said it had secured a $7 billion cash infusion, but also cleaved its dividend and reported a $171 million first quarter loss. The bank's stock dove 27.6% to $6.03 as investors realized the dilutive effect that the new equity would have on the common shares.

NYSE Financial Sector Index was down 1% to 7,607.21.

Other banks fell hard on the news. First Horizon (FHN Quote) plunged 9.4% to $11.83 and Fifth Third Bank(FITB Quote) crumbled 7.5% to $19.38. Fifth Third had been rumored to have been considering buying Nat City, before the bank raised money in the offering.

Colonial Bancgroup's (CNB Quote) shares sank on Monday after the regional bank's first-quarter earnings missed analyst's expectations. Colonial, like Nat City, cut its dividend and said it would sell shares to raise capital. The stock hit a year-low of $8.53, losing 12.2% and closing at $8.71.

B. Riley & Co. on Monday downgraded Banco Popular(BPOP Quote), following the Puerto Rican bank's earnings disappointment Friday. Riley knocked the stock to neutral from buy and shares dropped 9.1% to $11.15.

Oppenheimer analyst Meredith Whitney had bearish forecasts for Wells Fargo(WFC Quote) and Citigroup(C Quote), weighing on both stocks. She downgraded Wells to underperform from perform citing, her belief that the bank is under-reserved. Wells slid 3.7% to $29.27, a loss of $1.13. Whitney also suggested that Citi, who she correctly said would have to cut its dividend months before it did, should slash or even eliminate its dividend altogether. Citi has already dropped its quarterly dividend to 32 cents from 54 cents. But Whitney believes that the profits are under duress and it may have a hard time paying even its reduced dividend. Citigroup shares fell fractionally to $25,05, for a loss of 8 cents.

One of the few financial stocks to move up on Monday was futures exchange company CME Group(CME Quote). The operator of the Chicago Mercantile Exchange and the Chicago Board of Trade jumped 3.9% ahead of its earnings to be reported on Tuesday. Volumes have been steadily climbing, causing a Citigroup analyst forecast the earnings to rise. Shares rose to $523.50, a gain of $19.77.