NEW YORK (TheStreet) -- Bank stocks tumbled amid a broad market decline as investors raced to escape the fallout from a likely Greek debt default: The KBW Bank Index dropped 2.5% and the S&P 500 Financials Index dropped 2.4%, outstripping a slide of 2.1% by the S&P 500.
Meanwhile, JPMorgan Chase (JPM) stock was downgraded by Oppenheimer, Morgan Stanley (MS) dipped its toe further into bond-trading and General Electric (GE) continued selling pieces of its finance business.
In a report that called bank fundamentals "boring" no fewer than three times, Oppenheimer downgraded banking giant JPMorgan's stock to "perform" from "outperform."
While the analyst team led by Chris Kotowski still sees "modest upside" for JPMorgan, it favors Citigroup (C) and Bank of America (BAC) more. The rating shift reflects an assessment of JPMorgan relative to its peers, the team explained, not a problem with the company. Kotowski's team also expects the bank's trading to be flat for the year, rather than increasing 2% as previously expected.
"Our estimate revisions are consistent with what we are doing for Bank of America and Citigroup -- trimming trading from up 2% to flat and trimming the margin slightly," Kotowski wrote in a report. "While our valuation model still shows modest upside relative to the S&P, it is now in the low to mid-single digits."
JPMorgan fell 2.5% to $67.20.
Morgan Stanley famously retreated from trading operations after the financial crisis in favor of more stable businesses such as wealth management. Now, the bank is ready to change tactics and expand in bond-trading -- a notoriously volatile, though sometimes lucrative business, according to the Wall Street Journal.