Updated from 11:17 a.m. EDT

Financial stocks were sliding Thursday, as investors took profits after the prior day's rally.

The NYSE Financial Sector Index was recently sliding 3.3% to 2,838, as the sector was gave up gains earned after the Federal Reserve said on Wednesday it may pour more than $1 trillion in liquidity into the market.

Banking giant Citigroup ( C) filed a registration statement to authorize the board to execute a reverse stock split. As part of the government bailout, Citigroup will make also good on its plan to exchange common stock for preferred. Citi shares were losing 11% to $2.74.

Bank of America ( BSC) tumbled 7.4% to sell at $7.10 after announcing that it would pay back its government loans next year.

JPMorgan Chase ( JPM) ticked down 6.6% to $25.32. The stock had gained 14% for the first three days of the week.

Wells Fargo ( WFC) was falling 8.79% to $15.73, as the bank said it had extended $51 billion in loans to customers in January and had lent a total of $144 billion over the last four months, six times more than it had lent over the same period last year.

M&T Bank ( MTB) was downgraded by Citigroup from buy to a hold based on valuation. The bank, which counts Berkshire Hathaway ( BRK-A) as an investor, as losing 3.5% to $40.47. The analyst pointed out that there were significant near-term risks.

On the flip side, Fannie Mae ( FNM)finally broke the buck on the upside. The lender jumped 28.8% to $1.04, as it reported that its refinancing volume had increased to more than $41 billion in February. This brings its refinancing volume to its highest level in almost a year.