Financial Stocks Continuing Sharply Lower Following Geithner Speech (BAC, C, JPM, more)
Financial stocks are continuing sharply lower following the unveiling of Treasury Secretary Timothy Geithner's proposed recovery plan.
About 30 minutes before Geithner began his speech, the US's largest banks -- Bank of America (NYSE: BAC), JPMorgan (NYSE: JPM), Citigroup (NYSE: C), Wells Fargo (NYSE: WFC) and US Bancorp were down 11%, 2.3%, 3.5%, 4.7% and 5.4%, respectively. These losses have widened substantially since the speech: BofA is now down nearly 16% to $5.80, JPMorgan is down 6.5% to $25.54, Citigroup is down 10% to $3.55, Wells Fargo is down 12.4% to $16.69 and US Bancorp is down 10.6% to $14.95. Also, Morgan Stanley (NYSE: MS) is currently down 8% to $21.68, while Goldman Sachs (NYSE: GS) is down 6.3% to $91.70.
Meanwhile, financial ETF's are seeing extremely heavy volume today. The Financial Select Sector SPDR (NYSE: XLF) is down 7.3%, while the Financial 3x Bull (NYSE: FAS), commonly referred to as the FAS, is down 19.4%.
Given the negative market reaction, traders seem to be disappointed with a lack of clarity and structure to the plan.
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