Financials Lower as Numerous Banks Plan Offerings, Investors Fear Dilution (BBT, USB, COF, more)

Financial stocks are down today following numerous equity offering announcements. Several companies said they will do the offerings in order to cover stress test buffer levels, while several others will raise money in order to repay TARP funds. The XLF, or Financial Select Sector SPDR ETF (NYSE: XLF), a broad measure of the financial group, is down about 2.7% today.

• BB&T (NYSE: BBT) said it will offer up to $1.5 billion in common stock with the intention of paying back TARP funds following favorable results from the bank stress test last week. The stock is down 3.5%.
  
• U.S. Bancorp (NYSE: USB) will raise $2.5 billion in common shares in order to pay back its TARP funds. Shares are down 4.9%.
  
• Capital One (NYSE: COF) will offer 56 million shares to repay its TARP loan. The stock is down 8.9%.
  
• KeyCorp (NYSE: KEY) said it will offering $750 million in common stock in order to cover part of its stress test capital buffer. The stock is down 4.7%.
  
• Principal Financial (NYSE: PFG) will offer 42.25 million shares. The stock is down 10.3%.
  
• Berkshire Hills Bancorp (Nasdaq: BHLB) plans to offer $30 million common shares. The stock is down 3.6%.

Elsewhere in the sector: Bank of America (NYSE: BAC) has fallen 3.7% today, Citi (NYSE: C) is down 0.50%, Goldman Sachs (NYSE: GS) is down 1%, shares of JPMorgan (NYSE: JPM) are down 3.4% and Morgan Stanley (NYSE: MS) is down 4.6% despite an upgrade to Buy at Pali.

UPDATE: After the close today, Bank of New York Mellon (NYSE: BK) also announced that it will offer $1 billion in common stock.

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