Zions Bancorp. and Citigroup Inc. led bank stocks lower Monday after Zions closed a debt-for-equity exchange offer and the U.S. Treasury said it would unload its 27% stake in Citigroup.
The KBW Bank Index fell 0.25%, to 52.17.
The 24-bank index had a mixed day but ultimately closed down after Zions said it will now issue 2.17 million shares — and raise $55.6 million in common equity — after a successful tender for an equivalent amount of subordinated debt. Its shares fell 2.16%, to $21.75 a share.
Separately, the Treasury said it would sell its 7.7 billion common shares of Citigroup this year. Citigroup fell 13 cents a share, or 3.02%, to $4.18.
Positive economic news sent the broader markets higher.
The Commerce Department said consumer spending rose in February and that personal incomes were flat.
The Dow Jones industrial average rose 0.42%; the S&P 500 index, 0.57%.
Large and midsize banks were mixed.
Bank of America Corp. rose 0.78%; Comerica Inc., 0.85%; Capital One Financial Corp., 1.74%, and Fifth Third Bancorp, 0.91%.
JPMorgan Chase & Co. fell 0.36%; Wells Fargo & Co., 0.38%; SunTrust Banks Inc., 0.6%; KeyCorp, 1.78%, and BB&T Corp., 0.16%.
