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Friday's Financial Winners & Losers

Pessimistic analysts helped weigh on financial stocks Friday.

Bank analysts held sway over the market Friday, as gloomy outlooks dragged down most bank stocks.

Keefe, Bruyette and Woods analyst cut earnings estimates on 19 regional banks by a median of 5.6%, as credit markets and residential mortgage markets continue to wreak havoc on banks profits. Shares of

First Horizon

(FHN) - Get First Horizon Corporation Report

fell $1.03, or 7% to close at $13.63, hitting a new 52-week low. First Horizon is facing mounting loss reserves as non-performing assets increase.

Other losing banks included

Imperial Capital Bancorp

(IMP)

, which plunged 9.1% to $20.38 and

Frontier Financial

(FTBK)

, which slipped 9.2% to $18.17.

A JPMorgan Chase analyst cut his 2008 earnings estimates for

Citigroup

(C) - Get Citigroup Inc. Report

,

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Bank of America

(BAC) - Get Bank of America Corporation Report

and

Wachovia

(WB) - Get Weibo Corporation Report

, sending the national banks downward. BofA shares fell 96 cents to $39.41. Shares of Wachovia fell $1.16, or 4.1%, to $27.21.

Citigroup, like BofA and Wachovia, also faces further writedowns in the first quarter, the analyst wrote in the note. Media reports on Friday said Citi was preparing a $4.5 billion five-year note sale. The bank's shares, however, dipped only 28 cents to $24.08.

Other national banks fell in tandem.

Washington Mutual

(WM) - Get Waste Management Inc. Report

plummeted $1.32, or 11.5%, to $10.17.

In other banking news,

Fifth Third Bancorp

(FITB) - Get Fifth Third Bancorp Report

is the latest name to surface as a possible buyer for struggling

National City

(NCC)

. Fifth Third ticked up 16 cents to $22.71, while Nat City dropped another 80 cents to $8.99.

The KBW Bank Index was down 2.2% to 82.46. The

NYSE

Financial Sector Index closed down 65.26 to 7,638.15.

On the positive side, futures broker

MF Global

(MF)

shot up for the second day in a row to $12.25, a gain of 6.8%. The Bermuda-based company is pursuing financing alternatives that could include the sale of a minority stake in the company or the issuing of longer-term debt, but not a full acquisition of the company, according to

The Wall Street Journal

. The firm has hired investment bank Lazard to help it with the process.