) -- Bank stocks ended lower on Wednesday, with

M&A rumors regarding regional banks failing to provide enough upside against broader economic concerns.

The KBW Bank Index fell 1.1% to 49.39.

PNC Financial Services

(PNC) - Get Report

was also down 3.1%, closing at $58.56

, following buyout rumors. The

South Florida Business Journal

indicated that PNC is considering

Regions Financial

(RF) - Get Report



(BBX) - Get Report

as possible take-over targets, though a competing report by

Dow Jones Newswires

indicated that PNC was not interested in Regions.

BankAtlantic shares were among the biggest winners in the financial sector, rising 14.6% to $1.10, while Regions shot up 1.8% to close at $6.31.


(STI) - Get Report

was the biggest losing component in the KBW Index, dropping 3.6% to $26.01 after Janney Capital Markets downgraded the shares to sell.

Elsewhere in the sector,

American International Group

(AIG) - Get Report

shares cooled off from the previous day's bullish session, dropping 1.1% to $51.19. On Tuesday the stock had hit a new 52-week high of $53.55.

Goldman Sachs

(GS) - Get Report

fell 1.3% to $165.21 and

Morgan Stanley

(MS) - Get Report

shed 1.6% to $26.20 following an analyst report that indicated the two Wall Street firms

could see estimates cut because of weak revenue.

-- Written by Lauren Tara LaCapra in New York


>To contact the writer of this article, click here:

Lauren Tara LaCapra


>To follow the writer on Twitter, go to


>To submit a news tip, send an email to:


Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.