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 finished the Tuesday session near their lows with the Russell 2000 (-1.0%) leading the slide. The S&P 500 lost 0.5% with nine sectors ending in the red.
Equities indices started the day with modest gains and spent the first two hours of action in the neighborhood of their flat lines. Although the early trade lacked clear sector leadership, that could have been overlooked due to the strength among heavily-weighted sectors like health care (-0.3%), ... More
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