) -- On a day of pullbacks for most bank stocks,

Morgan Stanley

(MS) - Get Report

was the loser among large financials, with shares declining 2.5% to $23.30, as they continued to pull back after

Thursday's market euphoria


Following last week's enthusiasm, the broad indexes declined slightly Monday as investors fretted over the prolonged

debt ceiling

negotiations in Washington, although

fears of an actual default

by the U.S. Treasury after the deadline passes on August 2 appear to be greatly exaggerated.


KBW Bank Index


declined 1% to 47.57, with 19 of the 24 index components down for the session.

Bank of America

(BAC) - Get Report

saw shares decline over 1%, as

two more analysts lowered their price targets for the stock

, as the nation's largest bank continued wading through the mortgage mess.

Other large banks seeing shares decline over 1% Monday included

Capital One

(COF) - Get Report

, which closed at $48.88;

First Niagara Financial Group


, closing at $12.77;

New York Community Bancorp


, at $14.22; and

Huntington Bancshares

(HBAN) - Get Report

, which closed at $6.02.

Monday's sector winner was

Fifth Third Bancorp

(FITB) - Get Report

, with shares rising 1.5% to $13.00.


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Money Funds Continue Euro Bank Exodus >


Written by Philip van Doorn in Jupiter, Fla.

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Philip van Doorn


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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 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.