This Day On The Street
Continue to site
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

Bank Stocks Pull Back on Fiscal Cliff Fear: Financial Losers

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 - Get Report) closing at $39.25 and JPMorgan Chase (JPM - Get Report), closing at $43.63. Shares of Wells Fargo (WFC - Get Report) 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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $14.56 0.00%
C $46.28 0.00%
JPM $63.20 0.00%
WFC $49.98 0.00%
AAPL $93.74 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs