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 S&P 500 settled lower by 0.8% after early strength turned into afternoon weakness.
Today's headline event came in the form of Ben Bernanke's testimony before the Joint Economic Committee. During his remarks, Chairman Bernanke said premature tightening of monetary policy could stall the pace of recovery. This followed weeks of conflicting remarks from FOMC members, which sparked speculation regarding possible changes to the Fed's policy course.
However, ... More
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