Updated from 2:30 p.m. ET
Financial stocks were taking a hefty beating Thursday, as uncertainty about the efficacy of the government's financial bailout plan persisted, and investors awaited action from Congress on an $789.5 billion economic stimulus package.
KBW Bank Index
was tanking 2.8% to 27.57, and the
Financial Select Sector SPDR
ETF was down 6.1% at $8.75.
On Tuesday, Treasury Secretary
unveiled a new version of the bailout package. The multifaceted approach was met with skepticism on Wall Street, and the
sold off following the announcement.
Uncertainty continued to prevail in the financial space Thursday, as critics expressed concern over the financial
Financial firms were leading among decliners in the
Dow Jones Industrial Average
. Of the index's members,
Bank of America
was dow.n 3.92% at $5.87,
was losing 2.2% at $3.61,
was shedding gaining 0.4% at $26.19, and
was falling 5.3% at $15.50.
Outside the Dow,
was losing 0.974% to $16.80. The Financial Industry Regulatory Authority announced it had fined segments of
, which Wells acquired in October. The fines, totaling $4.6 million, stem from Wachovia's sales of several of its business segments.
Former investment banks
were feeling less of a pinch. Goldman was 0.9% at $95.58, and Morgan Stanley was dropping 3.5% at $22.95.
Executives from BofA, Citi, JPMorgan Chase, Wells, Goldman, Morgan Stanley,
Bank of New York Mellon
on Wednesday testified before
in defense of their use of capital injections supplied by the Treasury under the Troubled Asset Relief Program.
was also having a rough day, falling 8.9% to $12.95.
There were hardly any winners in the financial space Thursday. One exception to the selloff, Dutch insurance firm
was gaining 3.8% to $5.19.