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 posted solid gains ahead of tomorrow's policy directive from the Federal Open Market Committee. The S&P 500 rallied 0.8%, while the Russell 2000 (+0.3%) could not keep pace with the benchmark index.
Equity indices hovered near their flat lines during the first two hours of action, but surged in reaction to reports from the Wall Street Journal concerning tomorrow's FOMC statement. Specifically, Fed watcher Jon Hilsenrath indicated that the statement ... More
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