The S&P fell 17.31 points, or 1.25%, to 1,370.26.
Shares of Bank of America dropped 5.34% on Friday to close at $8.68.
News broke on Friday that the bank is being sued because it charged customers who could not qualify for or did not want payment protection plans, The Associated Press reported.Bank of America shares trade at an estimated price-to-earnings ratio for next year of 8.21X; the average for its peers is 8.39X. For comparison, Citigroup (C) has a lower forward P/E of 7.21X; Wells Fargo's forward P/E is 8.98X. Twenty-three of the 39 analysts who cover Bank of America rate it at hold. Eleven analysts give the stock a buy rating and five rate it at sell. TheStreet Ratings gives Bank of America a C- grade with a hold rating. The stock has risen 56.12% year to date.