Financial stocks are getting demolished today, primarily because of their exposure to the Eurozone debt crisis.
Euro banks are getting it the worst as they have more exposure to the Eurozone crisis — are all off around or over 10%, with RBS leading the pack down over 14%.
Deutsche Bank is down 9.87%, the Deutsche Bank CEO having just admitted there is a crisis in the sector because of banks’ exposure to sovereign debt. He said banks would not be able to survive if they had to mark-to-market their sov debt risk.
U.S. banks are getting hit because they also have exposure to the Eurozone debt crisis. The FHFA lawsuits announced on Friday of course have an effect as well, but the real crisis right now is in the Eurozone and the banks’ exposure to it.
Bank of America:: -5.39%
Goldman Sachs is currently getting the best treatment. It’s only down just over 3%.