NEW YORK (
was one of the biggest losers among the large financial stocks Tuesday in a broad stock market sell-off that spared few companies or sectors.
Global economic worries -- particularly tied to concerns about European sovereign debt -- appeared to drive the sell-off, suggesting fears of a double dip recession are a far bigger factor for bank stocks than expected passage of financial regulatory reform in the United States.
Banks and other financials had rallied on Friday when legislators appeared to have reached a deal on the legislation, known as the Dodd-Frank Wall Street Reform and Consumer Protection Act. While passage of that deal in its present form has become shakier following the death of Senator Robert Byrd (D.,W.Va.) on Monday, the legislation is still expected to reach President Obama's desk largely intact.
Shares of Citigroup, both one of the most volatile and international of large U.S. banks, fell 6.75% to close at $3.73, making it the biggest percentage decliner among the money-center banks. Citigroup also saw a brief
due to a trade that crossed the tape at a price a12.7% below the previous one. The trade was later canceled, however.
Other big banks also sold off.
fell 3.84% to $37.11;
Bank of America
slid 4.4% to $14.57; and
pulled back 4.07% to $25.93. Volumes on these names were slightly higher than their daily average over the past three months.
was one of the more resilient names among big financials, with its shares down 2.12% for the session. CLSA analyst Mike Mayo stated in a report released Monday he expects Goldman to settle fraud charges with the Securities and Exchange Commission for $1 billion by year-end. Mayo lowered his earnings estimates on Goldman to reflect the cost of the settlement.
was down 4.36% to $23.45, while the
KBW Bank Index
was off 4.43% to $46.84.
Particularly hard hit among financial names were mortgage insurers, regularly among the most volatile stocks in the sector. Shares of
fell 10.68% to $7.44 and
dropped 9.20% to $2.96. Volumes on those names, however, were slightly below their trailing three month daily averages.
However, it seemed there was no place to hide in the broad financial sell-off. Even the exchange operators, widely viewed as beneficiaries of financial reform, were weak with
down 3.93% to $27.88and
falling 3%. to $287.91.
Written by Dan Freed in New York