Major banking stocks were clobbered in Thursday's market as investors gave in to their fears about interest rates.
"It's general fear of rates and derivatives, as well as fallout from the Orange County fiasco," said Michael L. Mayo, banking analyst at Lehman Brothers, New York.
In late trading, Nations-Bank Corp. was off $2 to $43.75, Citicorp was down $1.375 to $40, and First Interstate Bancorp had slipped $2 to $67.50.
Bankers Trust New York Corp., already the focus of derivatives fears, was hammered down $2.25 to $57 as Media Group Carlton Communications London confirmed that it is suing over losses on structured notes it bought from the bank.
J.P. Morgan & Co., another trading bank, was off $1.375 to $58.125.
Michigan National Corp. bucked the trend and rose $1.50 to $76.25.
Heine Securities Inc. revealed in a filing with the Securities and Exchange Commission it had hiked its stake in the Farmington Hills-based company to 8.2% after buying 254,200 shares since late November.
