Citigroup Inc. dragged down bank stocks Friday after an analyst forecast significant writedowns for the battered company.
The KBW Bank Index fell 4.95%, ending the week down 9.14%.
Citi's share's fell 22 cents, to $4.09, after Michael Mayo of Calyon Securities Inc. said the New York company would likely write down $10 billion in deferred tax assets in the fourth quarter.
Bank stocks and the broader markets were also driven down by a Labor Department report that personal spending fell 0.5% in September.
The Dow Jones industrial average fell 2.51% and the Standard & Poor's 500 fell 2.81%.
Decliners were across the board, with JPMorgan Chase & Co. down 5.8%, Bank of America Corp. 7.3%, Wells Fargo & Co. 3.7%, PNC Financial Services Group Inc. 6.4% and U.S. Bancorp off 4.1%.
Among the regionals, SunTrust Banks Inc. was off 2.8%, BB&T Corp. 6.1%, Capital One Financial Corp. 6.2%, KeyCorp 4.8%, Fifth Third Bancorp 3.6%, Comerica Inc. 2.6%, Marshall & Ilsley Corp. 6.2%, M&T Bank Corp. 4.3%, Zions Bancorp. 6.1% and Regions Financial Corp. off 34 cents, to $4.84.
