Financial stocks tumbled on Monday as uncertainty over the situation in Europe continued to hold stock prices back. At this point, the market may be pricing in a default by Greece on its debt, or at least a prolonged period of uncertainty. European ministers delayed a decision on releasing 8 billion more Euros to Greece until next month. European finance ministers are talking now about their plans to deal with Greece.
Morgan Stanley (MS) led the pack down, dropping 6%, although there didn’t appear to be any company-specific news to cause the drop. Bank of America (BAC) was off about 3.5%. British and French banks continued to drop more dramatically than American financial institutions. Barclays (BCS) was off 8%.
The Dow was off about 196 points, or 1.7%, after rising five straight days last week.
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