Regional Banks Taking It On The Chin
Bucking the rally. Following yesterday's announcement that KeyCorp would cut its dividend in half, a number of regional banks are notably weaker today.
Goldman Sachs sent a note out late last night with this title: Key is Likely Not Alone, More Capital Raises and Dividend Cuts to Come. They specifically mentioned Regions Financial, Fifth Third, Comerica, Bank of America and SunTrust; all but Bank of America are down notably. BofA already said this week that they would not have to raise capital or cut the dividend, assuming the U.S. avoids a recession.