Financial stocks gave back some their recent gains on Monday, reacting to a newfound pessimism about Europe’s chances of solving its debt problems. Moody’s helped dampen the mood by saying it will review the credit rating of European nations for possible downgrade early next year as thew agency isn’t convinced that the countries have really tackled their problems.
In addition, Dutch financial company ING Group (ING) fell 8.7% after saying it will swap subordinated debt for senior loans and cash. Credit default swap prices rose throughout Europe and for American banks, according to Markit.
Morgan Stanley (MS) led U.S. banks lower, falling 5.7% in early trading. Bank of America (BAC) dropped 3.9% to $5.50.
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