Foreclosure Worries Hurt Bank Stocks

Financial firms led declines in U.S. stocks Thursday as investors retreated from financials because of concerns over banks' foreclosure practices.

The KBW Bank Index fell 2.63%, to $46.34.

Bank of America Corp. dropped 69 cents, or 5.2%, to $12.60, and JPMorgan Chase & Co. fell $1.12, or 2.8%, to $38.72. Both are among the wave of banks reviewing their foreclosures after temporarily suspending evictions due to concerns over "robo signers," who approve hundreds of foreclosure documents a day.

Wells Fargo fell 4.22%. to $24.72. Citigroup Inc. shares fell 19 cents, or 4.5%, to $4.06.

Regional banks were affected, too. Huntington Bancshares shed 16 cents, or 2.6%, to $5.72, while Fifth Third Bancorp fell 36 cents, or 2.8%, to $12.34.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER