Updated from 3:10 p.m. ET

Financial stocks were falling Monday, as investors fretted about the health of banks and the Dow Jones Industrial Average fell below 7,000 for the first time in 11 years.

The NYSE Financial Sector Index lost 7.2% to 2,337, as components Bank of America ( BAC), Citigroup ( C), JPMorgan Chase ( JPM) and Wells Fargo ( WFC) were all suffering steep losses. BofA was down 8.1% to $3.63, Citi was off 20% to $1.20, JPMorgan shed 7.4% to $21.16 and Wells lost 10.4% to $10.84.

Mortgage giant Freddie Mac ( FRE) was losing 9.5% to 38 cents after it announced CEO David Moffett was resigning.

PNC Financial ( PNC) was off 4.5% to $26.12 after the company slashed its dividend by 85%.

AIG ( AIG) was down to 42 cents, after the government pledged another $30 billion in aid and lightened up the terms of an earlier loan, after the company posted a $61.7 billion fourth-quarter loss.
This article was written by a staff member of TheStreet.com.