The Financial Select Sector SPDR Fund
Bank of America shares slipped nearly 2% and were the most actively traded stock on the NYSE by share volume. In other large-cap banks, Citi rose fractionally Friday along with Wells Fargo
Analysts and ratings agencies around the globe are trying to get a handle on lenders' exposure to Greek debt if the European debt crisis continues to deteriorate.
Investors are also trying to figure out whether recent weakness in the economy is just a soft patch or the start of something worse. Many economists are looking for a rebound in the second half of 2011 to set things right.
The primary risks for banks include declines in real estate prices and general economic weakness, while potential upside surprises include "a faster-than-expected economic recovery, rising home prices, and a more favorable political landscape," Deutsche Bank
Banks are facing tougher capital rules and lingering public fury over the credit crisis and financial bailout.
The financial ETF is down almost 10% over the past three months.
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