U.S. shares of European banks fell Wednesday as a raft of news pressured the financial sector.
On Wednesday, Morgan Stanley reported a 61-percent decrease in its fiscal second-quarter profit as it sold some assets and felt the impact of the credit crisis. The bank's revenue fell short of expectations.
Fifth Third Bancorp. said it will raise $2 billion through a stock sale and by selling off some businesses, and slashed its dividend, while MF Global Ltd. said credit spreads will reduce its fiscal first-quarter profit.
Goldman Sachs analyst Christoffer Malmer said Credit Suisse Group, Deutsche Bank AG and UBS AG may face new write-downs in the second quarter because of the falling value of credit connected to U.S. real estate.
Here is how stocks in the sector were faring in late afternoon trading:
Bank of Ireland group lost $2.36, or 5.4 percent, to $40.99.
UBS fell 60 cents, or 2.4 percent, to $23.95.
Barclays Group PLC dipped 90 cents, or 3.4 percent, to $27.67.
Lloyd TSB Group PLC slipped 97 cents, or 3.5 percent, to $26.98.
HSBC Holdings PLC gave up 59 cents to $80.16.
Credit Suisse declined 36 cents to $47.83.
Deutsche Bank shed $1.19 to $95.48.
All the stocks trade as ADRs, or American Depositary Receipts, which are securities that allow U.S. investors to trade shares of companies based overseas.
The Bank of New York Europe ADR index slid 1.50 points to 165.72 in afternoon trading.
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