Financial stocks were among the worst performers on what was another ugly day for the U.S. stock market.

The KBW Bank Index sank 10.6%, and the NYSE Financial Sector index surrendered 8.9%. The Amex Securities Broker/Dealer dropped 9%.

Stocks across the board were hammered.

Merrill Lynch

(MER)

and

Morgan Stanley

(MS) - Get Report

both sank 25%, and

Goldman Sachs

(GS) - Get Report

slumped 7%.

AIG

(AIG) - Get Report

gave back more than 9%.

Bank of America

(BAC) - Get Report

, which was aiming to raise $10 billion in a stock offering, sank 26%. The company also said, following the close Monday, that it was cutting its dividend and that third-quarter earnings fell sharply from the same period last year.

Elsewhere on the

Dow Jones Industrial Average

,

JPMorgan Chase

(JPM) - Get Report

and

Citigroup

(C) - Get Report

had double-digit losses.

American Express

(AXP) - Get Report

declined 6%.

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