Some of the biggest U.S. banks are having a bad day courtesy of one of the smallest countries in the euro zone.
Cyprus’ decision to tax bank depositors to help fund the $13 bailout the debt-ridden country received prompted Wall Street investors to sell their shares of big bank stocks today. All but one of the six big banks took a hit today – some more than others.
Here’s how they’ve fared as of 3 p.m. eastern on Monday:
- Citigroup (NYSE: C): -1.5%
- Morgan Stanley (NYSE: MS): -1.9%
- Goldman Sachs (NYSE: GS): -1.2%
- JPMorgan Chase (NYSE: JPM): -0.8%
- Wells Fargo (NYSE: WFC): -0.9%
- Bank of America (NYSE: BAC): +0.8%
The direct impact on U.S. banks from this Cyprus bank tax is probably minimal. But the bad publicity for banks in general was enough to convince investors to sell their big-bank shares at a time when financials are already up 14% year-to-date.
It may be just a one-day pullback – and probably a long overdue one considering the recent run-up.