S&P downgrades 22 banks
Wells Fargo, Capital One, and Keycorp are affected. Analysts see more weakness ahead.
A host of inancial stocks, which had helped boost stocks from their March lows, were downgraded today by Standard & Poor's today.
The big downgrade was a big reason why financial stocks were so weak today.
Wells Fargo was down 5.4% to $23.09. Keycorp lost 7.8% to $5.46, and PNC Financial dropped 3.6% to $37.99.
"Financial institutions are now shedding balance-sheet risk and altering funding profiles and strategies for the marketplace's new reality," S&P credit analyst Rodrigo Quintanilla wrote in a note today.
"Such a transition period justifies lower ratings as industry players implement changes."
Carlina First is privately held; the others saw their shares fell at least 6% on the day.
S&P said it will hold a conference call on Thursday to discuss the downgrades.
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[BRIEFING.COM] The major averages spent the entire session in a steady downtrend, but despite persistent selling pressure, today's losses were limited in scope. The Dow, S&P 500, and Nasdaq shed between 0.2% and 0.3% while the Russell 2000 lagged, falling 0.9%.
The underperformance of the Russell 2000 was likely owed in part to tax-loss selling, which tends to pick up this time of year. Small-caps often feel that pinch in a stronger fashion than large-cap issues since individual ... More
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