Sector Update: Regional Bank Stocks Give Back Yesterday's Gains on Merger Delay News, CDO Concerns
Regional bank stocks have given back all of yesterday's 1% advance with the S&P 500 Regional Banks (SP500-40101015) under pressure on news that the Hudson City Bancorp ( HCBK ) and M&T Bank ( MTB ) merger will be delayed due to compliance problems identified at M&T Bank. The merger is now expected to close in the second half of 2014.
Also likely adding pressure to the group is news from Zions Bancorp ( ZION ), down near 2% after the company reported after yesterday's close that it will be forced to take a $387 million after-tax charge for Q4 2013 to divest its portfolio of collateralized debt obligations (CDOs).
Among banks getting hit the hardest today are Firstmerit Corp ( FMER ) down 2.2%, City Holding Company ( CHCO ) down 2.1%, KeyCorp (KEY) down 1.5%, Huntington Bankcshares (HBAN) down 1.2%, and BB&T Corporation (BBT) down 1.2%.