This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Bank Stocks Pull Back on Fiscal Cliff Fear: Financial Losers

Stocks in this article: BAC C JPM WFC I:BKX

Updated with market close information.

NEW YORK ( TheStreet) -- The nation's biggest banks trimmed earlier losses late in Thursday's trading session, as Republican leaders confirmed that the House of Representatives would return to work on Sunday, in an effort to avert the Fiscal Cliff.

The "big four" U.S. banks all recovered from earlier 2% declines. Three of the big four saw 1% declines, including Bank of America , with shares closing at $11.47, Citigroup (C) closing at $39.25 and JPMorgan Chase (JPM), closing at $43.63. Shares of Wells Fargo (WFC) ended the day with a slight decline, closing at $34.18.

The broad indexes all ended with slight declines, recovering from earlier losses. The KBW Bank Index (I:BKX) was down slightly to close at 50.95, with all but seven of the 24 index components showing declines.

Speaking on the Senate Floor Thursday morning, Senate Majority Leader Harry Reid (D., Nev.) was doubtful over the prospect of a happy New Year for taxpayers, saying "I don't know time-wise how it can happen now," and that "Democrats can't put together a plan on their own because, without participation of Senator Minority Leader McConnell and Speaker Boehner, nothing can happen on the fiscal cliff."

House Speaker John Boehner (R., Ohio), along with House Majority Leader Eric Cantor (R., Va.) and Majority Whip Kevin McCarthy (R., Ca.) released a statement late on Wednesday, reiterating that the ball was in the Senate's court: "The House has acted on two bills which collectively would avert the entire fiscal cliff if enacted. Those bills await action by the Senate. If the Senate will not approve and send them to the president to be signed into law in their current form, they must be amended and returned to the House."

Also late on Wednesday, Treasury Secretary Timothy Geithner said in a letter to Reid that the federal government would hit its $16.4 billion debt limit on Dec, 31. Geithner said that the Treasury would be ready to take "extraordinary measures" in order to "create approximately $200 billion in headroom under the debt limit."

Later on Thursday, Republican leaders in the House of Representatives said they would return to work on Sunday, and the Wall Street Journal said that the House would hold its first vote at 6:30 p.m. Sunday, citing an unnamed "GOP leadership aide."

Fiscal Cliff Won't Stop Capital Return

The Federal Reserve will begin its next round of annual stress tests in February, and in March will hand down its decisions on whether or not to approve large bank's plans to return capital to investors through dividend increases and share repurchases.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs