(Citigroup and other stock prices brought current, cloture vote results added in this update.)
NEW YORK (
was among the losers of the financial sector Thursday, following the broader market indices lower as the
approached correction territory.
shares fell nearly 5% as the S&P 500 fell 2.5% to 1086.94, a loss of 10% over the last month, to the index's lowest level since February. Stocks were pressured by a surprising jump in
and continued fears over the
debt crisis in Europe
Financial stocks were among the hardest hit of the market sectors. The
ProShares Ultra Financial
ETF lost 4.6%, the
iShares Dow Jones U.S. Financial Sector
ETF slid 2.5%, and the
Financial Select Sector SPDR
Citigroup was among the biggest bank stock decliners, falling 2.4% to $3.72. Among other U.S. bank stocks,
retreated 3% to $26.24,
Bank of America
slid 2.8% to $15.86,
was down 1.5% to $137.98,
gave back 1.4% to $29.65, and
fell 0.9% to $39.03.
Citigroup Cramer Still A Believer
In U.S. bank-related news, the Senate voted to end debate on the
, which means a final vote on the legislation could come in the next few days. After the Senate failed in its first attempt to end the debate Wednesday, a second attempt reached the 60-vote minimum to pass.
Paul Miller, a bank analyst with FBR Capital Markets, said that while the first failed vote was a "stumbling block, the Senate is still poised to complete work on this bill in the next few days, setting up reconciliation with the House and, we believe, final passage next month."
Miller suggests that investors watch for debate over an amendment would strengthen the Volcker Rule by "accelerating the process and giving less leeway to regulators for implementation. While this amendment is still a threat, the opposition is making it tough for it to get attached to the bill," Miller said
Overseas bank stocks were tumbling as well. Most notably,
Bank of Ireland
trading in New York dropped nearly 19% to $5.66 after the bank's shareholders approved a €3.5 billion capital-raising program.
Among other foreign bank stocks,
Allied Irish Banks
Lloyds Banking Group
was down 3.9%,
Royal Bank of Scotland
gave back 2.4%, and
National Bank of Greece
Back in the U.S., insurance company stocks were plummeting as well.
American International Group
Hartford Financial Group
was down 4.4%, and
-- Written by Robert Holmes in Boston
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