NEW YORK ( TheStreet) -- State Street Corp. ( STT) of Boston was the loser among major U.S. banks on Tuesday as shares sank 2.7% to close at $69.90. Banks fared worse than the broad market on Tuesday as the KBW Bank Index ( I:BKX) dropped over 1% to 65.13 as Federal Reserve Bank of Dallas President Richard Fisher said in an interview on CNBC that he understood "full well" the sensitivity of investors to the eventual curtailment of the Federal Reserve's "QE3" bond purchases, but added "this program cannot go on forever." "Every bond we buy comes back to us in terms . . . of excess reserves. Our balance sheet, of course, has become bloated," Fisher added. Fisher went on to say that "the reports that are coming through, especially from the private sector . . . have been, on a cumulative basis, increasingly positive." The Federal Reserve has been making net purchases of $45 billion in long-term U.S. Treasury bonds and $40 billion in agency mortgage-backed securities each month since September 2012 in an effort to hold down long-term interest rates. Stronger-than-expected numbers on Friday for U.S. job creation during October have once again raised fears among stock investors that the Federal Open Market Committee may decide to "taper" the central bank's bond buying. The FOMC next meets on Dec. 17 to 18.