Updated with anannouncement from the MF Global trustee and a report by Credit Suisse.
NEW YORK (
Bank of America
was the loser among the largest U.S. financial names Monday, with share dropping 5% to close at $5.49.
The broad indexes were all down over 2% as investors fretted over the expected failure of the congressional super committee to agree by its Nov. 23 deadline, on a combination of spending cuts and tax increases to trim the federal budget deficit.
KBW Bank Index
declined 3% to close at 36.40, with the 24 index components seeing declines of at least 1%.
Meanwhile, the trustee in charge of liquidating MF Global's brokerage unit of
( MF) following the firm's bankruptcy filing, said that "the apparent shortfall in what MF Global management should have segregated at US depositories may be as much as $1.2 billion or more," which is
While there was a lack of major news out of Europe, Credit Suisse released a report cheerfully entitled
, in which a team of researchers argued that extraordinary measures will be need to be taken in order to avoid "the progressive closure of all the eurozone sovereign bond markets, potentially accompanied by escalating runs on even the strongest banks."
were down nearly 5% to close at $25.00.
Large U.S. financials seeing shares dip 4% declines on Monday included
, closing at $4;
, at $13.60; and
American International Group
, which closed at $91.30.
Large U.S. banking names seeing 3% declines included
, closing at $22.06;
Bank of New York Mellon
, at $18.42;
, at $24.09;
Fifth Third Bancorp
, at $11.52;
, at $6.85;
, at $50.97;
, at $3.97; and
, closing at $24.62.
Written by Philip van Doorn in Jupiter, Fla.
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Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.