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SunTrust(STI Quote) also had a terrible week, with shares returning a negative 15.60%. After Goldman Sachs last week predicted U.S. banks would need to raise another $65 billion capital, shares traded as low as $35.92 before recovering a bit later in the week when SunTrust issued a press release standing by its previous estimates of charge-offs for the second quarter and stating that it had no plans to cut its dividend or raise additional capital.

Merrill lowered SunTrust's earnings estimates to $2.40 for 2008 and $3.00 for 2009, from $3.45 and $4.

Regions Financial(RF Quote), also mentioned in the Goldman and Merrill reports, dropped 15.51% for the week. Regions posted net income of $337 million for the first quarter of 2008, much improved from $71 million the previous quarter, however, this simply reflected a reduction in the quarterly provision for loan loss reserves, which was $181 million, down from $358 million in the fourth quarter.

Merrill expressed concern over the holding company's $15.5 billion in construction loans, and estimated losses of up to 5%, or $775 million, in 2009. Merrill also stated that it expected the holding company's second quarter 2008 provision for loan losses to be nearly double from the first quarter. If Merrill's projections are accurate, Regions will remain a weak earnings performer through 2009, with earnings per share of $1.40 for 2008 and $1.25 for 2009, down from previous estimates of $1.85 and $1.95.

On Friday, The Wall Street Journal reported Bank of America(BAC Quote) was planning to complete its acquisition of Countrywide Financial(CFC Quote) on July 1. BofA shares closed down 4.5% on Monday to $25.88, a new 52-week low.