Updated from 12:53 p.m. EST
Large regional banks across the U.S. plunged on Thursday after reporting earnings hit by the ever-expanding mortgage and credit market deterioration.
The KBW Bank Index, which tracks the largest banking companies, dropped 3.9% to 79.53, while the KBW Regional Banking Index fell 3.1% to 66.80.
"Most of our clients are sitting on the sidelines waiting for these [earnings] numbers to come out and then reacting accordingly," says Matt Shields, a senior trader at FIG Partners in Atlanta, which focuses on regional bank stocks. "Nonperforming assets continue to rise and credit issues continue to be at the forefront of our clients' eyes. The construction loans are certainly the riskiest ... New construction has seen a massive halt [and there are] plenty of houses on the market." ...
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