CIT Group ( CIT - Get Report) on late Monday became the latest financial company to embark on a capital-raising effort dilutive to current shareholders, contributing to the sector's slide Tuesday.

The commercial financier priced a $1.5 billion offering of common and preferred stock, with the common going for $11 a share. The stock, which closed Monday's session at $12.74 a share, dropped $1.99, or 15.6%, to $10.75. CIT has been lately selling off assets to raise capital in order to fund new business.

The NYSE Financial Sector Index ended the day down 82.49 to 7,524.72.

Also falling hard on the day was CME Group ( CME - Get Report), which runs the Chicago Mercantile Exchange and the Chicago Board of Trade. The exchange operator crumbled 7.6% to $483.50, a loss of $40 after it missed analysts' estimates. Even though the company reported increases in trading volume and revenue, investors showed it no mercy. Rival Intercontinental Exchange ( ICE - Get Report) fell in sympathy on the news to $150.29, down $9.26.

Insurance companies were also falling after reporting weak quarters. Zenith National Insurance tumbled $1.97, or 5%, to $37.60 after reporting a drop in income. Insurance company Amerigroup fell $2.60 to $26.49 after United Health ( UNH) posted a weak first quarter.

Investment manager Waddell & Reed Financial ( WDR - Get Report) said its first-quarter earnings fell 1% due to growing distribution and incentive costs. Waddell & Reed's operating margin narrowed during the quarter because of higher distribution costs, tied to increased sales in the company's wholesale channel, and rising incentive compensation for the investment management staff. All this caused the stock to slide 3.8% to $31.80, a loss of $1.26.

On the positive side, Fifth Third Bank ( FITB - Get Report) managed to beat Wall Street's earnings estimate even though it didn't escape the troubles affecting most banks. Weak economies in Michigan and Florida led to high foreclosure rates and loans going bad. Those losses were offset partially by $273 million it raked in from Visa's ( V - Get Report) initial public offering. Fifth Third shares shot up 8% to $20.93

Arizona-based bank TCF Financial ( TCB) ticked up 79 cents to $17.59, even after reporting a 43% drop in earnings. TCF also enjoyed a Visa boost, but not enough to overcome its exposure to the depressed housing market.

And finally, First Cash Financial Services ( FCFS - Get Report) said its profit shrank 35% in the first quarter, as the pawn shop operator's car dealership business continued to struggle with bad credit. It seems that while the pawn shops are doing well, customers aren't making their car payments. However, high gold prices have resulted in customers flocking to pawn shops to unload merchandise, sending shares soaring 9.6% to $14.22, a gain of $1.24.