NEW YORK (TheStreet) -- European banks are leading a slide in finance stocks as investors scramble to avoid the fallout of Greece's failure to strike a deal with creditors over the weekend.
Deutsche Bank (DB) dropped 6% on Monday, followed by Commerzbank (CRZBF) and Societe Generale (SCGLY), which each saw shares fall 5%. European companies are being squeezed more than those in the U.S. because they typically rely heavily on their region for profit, and risk-averse banking investors are concerned by both the collapse of negotiations and the looming 1.6 billion euro ($1.8 billion) payment due to the International Monetary Fund on Thursday.
Deutsche Bank carried roughly 416 million euros of Greek debt at the end of last year, compared with 400 million for Commerzbank, said Sebastien Pigeon, an equities analyst with Morningstar.
As for investment banking generally, "there's going to be some worries that their type of business will stall in the third quarter," Pigeon said in a phone interview with TheStreet.
E-brokerage firms including E*TRADE (ETFC) and Charles Schwab (SCHW) were hit on anticipations that lower rates in the U.S. as investors seek a safe haven from Europe would cut into profits, according to Richard Repetto, a principal at Sandler O'Neill. Both saw shares tank 4% in early trading Monday.