Updated from 3:10 p.m. ET

Financial stocks were falling Monday, as investors fretted about the health of banks and the

Dow Jones Industrial Average

fell below 7,000 for the first time in 11 years.

The NYSE Financial Sector Index lost 7.2% to 2,337, as components

Bank of America

(BAC) - Get Report

,

Citigroup

(C) - Get Report

,

JPMorgan Chase

(JPM) - Get Report

and

Wells Fargo

(WFC) - Get Report

were all suffering steep losses. BofA was down 8.1% to $3.63, Citi was off 20% to $1.20, JPMorgan shed 7.4% to $21.16 and Wells lost 10.4% to $10.84.

Mortgage giant

Freddie Mac

(FRE)

was losing 9.5% to 38 cents after it announced CEO

David Moffett

was resigning.

PNC Financial

(PNC) - Get Report

was off 4.5% to $26.12 after the company slashed its dividend by 85%.

AIG

(AIG) - Get Report

was down to 42 cents, after the government pledged another $30 billion in aid and lightened up the terms of an earlier loan, after the company posted a $61.7 billion fourth-quarter loss.

This article was written by a staff member of TheStreet.com.