Investors continued to worry over the coming bank earnings season, set to begin at 7 a.m. EST on Friday, when JPMorgan Chase (JPM) reports its second-quarter results, followed at 8AM by Wells Fargo (WFC). JPMorgan analyst Steven Alexopoulos said that there is a "storm brewing" for regional banks, as net interest margins face years of further pressure, as short-term rates interest rates remain near zero, and the Federal Reserve works to bring down long-term rates.
Following another in a seemingly endless stream of summit meetings, European finance ministers late on Monday announced that 30 million euro would be made available to prop up Spain's banks by the end of July. The yield on Spanish 10-year paper declined from 6.98% at Monday's close to 6.73%.
The shares trade for eight times the consensus 2013 EPS estimate of 77 cents, among analysts polled by Thomson Reuters. The consensus 2012 EPS estimate is 61 cents. After selling its Morgan Keegan brokerage subsidiary and completing a $900 million common share offering during the first quarter, Regions in early April repaid $3.5 billion in government bailout funds received during 2008 through the Troubled Assets Relief Program, or TARP.
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