Investor Alert

Sept. 21, 2020, 7:33 a.m. EDT

Banks stocks sink after report of alleged widespread money-laundering activities

Bank stocks took a broad hit in premarket trading Monday, after reports were published alleging many major banks continued doing business with customers despite suspecting money-laundering activities. The SPDR Financial Select Sector ETF (PSE:XLF) dropped 2.8% ahead of the open, underperforming the selloff in the broader stock market, as futures (CBT:YM00) for the Dow Jones Industrial Average (DOW:DJIA) fell 528 points, or 1.9%. Among some of the financial ETF's more heavily weighted components, shares of J.P. Morgan Chase & Co. (NYS:JPM) slid 4.9%, Bank of America Corp. (NYS:BAC) shed 3.8%, Citigroup Inc. (NYS:C) declined 4.4% and Well Fargo & Co. (NYS:WFC) lost 3.5%.

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