Big bank stocks follow Bank of America down

Shares in big banks fell hard after Bank of America's results fall short of estimates

Associated Press

Big banks fell hard Wednesday, after Bank of America turned in earnings results that fell short of estimates.

Earnings at the country's second-biggest bank were much stronger than the year before, but analysts described the quarter as noisy because of accounting charges that affected results. Revenue dipped slightly.

Bank of America fell 69 cents to $11.59 in Wednesday trading, a drop of 6 percent. Stocks in big banks dropped more than the overall market. The Standard & Poor's 500 index, widely used as a proxy for the stock market as a whole, was down 1.4 percent.

Bank of America also agreed to pay $500 million to settle a class-action lawsuit brought by investors who bought mortgage investments from Countrywide Financial, a lender it acquired in 2008.

Most of the major banks have reported earnings over the past week with mixed results. JPMorgan Chase and Wells Fargo, bellwethers for the banking industry, reported record earnings Friday. But revenue fell slightly at both banks, and their higher profits came mostly from trimming costs.

Citigroup reported better earnings on Monday. But the bank's executives said that they expect financial markets will likely turn volatile, buffeted by concerns over Europe and slowing economic growth in parts of Asia.

Morgan Stanley is scheduled to report earnings on Thursday before the market opens.

Here's how shares of other major banks were trading Monday afternoon:

— Citigroup, down $1.35, or 3 percent, to $45.31, a loss of 3 percent.

— JP Morgan Chase & Co., down $1.80, or 4 percent, to $46.68.

— Morgan Stanley, down 82 cents, or 4 percent, to $21.04.

— Goldman Sachs, down $5.57, or 4 percent, to $138.56.

— Wells Fargo & Co., down 66 cents, or 2 percent, to $36.40.

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