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) both sank 25%, and Goldman Sachs ( GS) slumped 7%. AIG ( AIG) gave back more than 9%. Bank of America ( BAC), 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) and Citigroup ( C) had double-digit losses. American Express ( AXP) declined 6%.