Slump Seen Continuing

The growth in bad loans is accelerating, according to a Goldman Sachs Group Inc. analyst.

"Banks will not bottom until underperforming asset growth decelerates," Richard Ramsden wrote in a report Friday. "Loans are going bad faster than banks earn money."

Bank stocks in the Standard & Poor's 500 advanced 4.2% Thursday after the Financial Accounting Standards Board relaxed the mark-to-market rules.

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