Regional bank stocks hammered over bailout plan
Written on September 23, 2008
Regional banks across the country saw their stock prices dive Monday morning as analysts expressed doubts that the federal government's planned bailout of mortgage debt would solve the industry’s basic problems.
In the Dayton area, Columbus-based Huntington Bancshares (NASDAQ: HBAN) led the drop, with its stock falling almost 17 percent, to $10.67 in morning trading; followed by Wilmington-based NB&T Financial Group Inc. (NASDAQ: NBTF), parent of National Bank and Trust Co., which plunged $2.85, or 15.8 percent, to $15.15; Cincinnati-based Fifth Third Bancorp (NASDAQ: FITB), whose shares were down almost 10 percent, to $17.01; and Minneapolis-headquartered U.S. Bancorp (NYSE: USB), down 6.7 percent, to $35.44.
Other banks with local operations saw their shares fall in the 4 percent range, including Cleveland-based National City (NYSE: NCC), down 4.1 percent to $5.38; Pittsburgh-based PNC Financial Services Group, down 4.6 percent to $77.47; and Norwood-based First Financial Bancorp, down 4.7 percent to $13.51;
According to an Associated Press story, analysts and investors feel the bailout, which would provide $700 billion to shore up struggling financial institutions, would not change the “weak fundamentals” of the housing market.
Other local financial stocks in the insurance sector also have been getting hammered payday loans. American Financial Group Inc. (NYSE: AFG) fell $2.58, or 8.1 percent, to $29.42. Cincinnati Financial (NASDAQ: CINF) lost $2.68, or 8 percent, to $30.93.
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