NEW YORK (
was the loser among large U.S financials on Friday, with shares of the investment bank dropping 11% to close at $13.50, on
Morgan Stanley's shares were trading for just above half their June 30 tangible book value of $24.35, according to SNL Financial. Atlantic Equities analyst Richard Staite lowered his thir-quarter EPS estimate for the investment bank to 24 cents from 52 cents, citing an expected 37% decline in institutional securities revenue, but even with a neutral rating, the analyst's $18 price target implies 33% upside for the shares
Shares of rival investment bank
were down over 5% to close at $94.55.
The broad indexes saw declines of over 2% as investors worried about a slowing global economy, with a report of a third-straight monthly decline in Chinese manufacturing, according to a report from HSBC Holdings and Markit Economics, as well as reports of slowing retail sales in Germany.
The European Central Bank reported that inflation in the Eurozone was above 3% in September, exceeding the central bank's target of below 2%, as well as economists' expectations of 2.5%.
KBW Bank Index
declined 4% to close at $35.34, with all 24 index components seeing big decines.
Large U.S. banks seeing shares plunge over 6% Friday included
, which closed at $14.07, and
, closing at $3.33.
Regions has been one of the more volatile stocks among the nation's largest banks, and bears the distinction of being the largest publicly traded bank holding company still owing government bailout funds received through the Troubled Assets Relief Program, or TARP. The company owes $3.5 billion in TARP money.
Big banks seeing 5% declines to end the week included
, closing at $25.62, and
, which closed at $5.93.
Bank of America
was down 4% to close at $6.12, as the
continued, from the company's decision to charge a
Other major financial names seeing 4% declines to round-out the month included
Bank of New York Mellon
, closing at $18.59;
, at $22.97;
First Niagara Financial Group
, at $9.15;
, at $4.80;
, at $20.12;
New York Community Bancorp
, at $11.90; and
, which closed at $17.95.
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Written by Philip van Doorn in Jupiter, Fla.
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Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.