Here’s Why Financial Stocks are Getting Hammered Now

Financials (NYSE:XLF) are selling off today after the FDIC rejected Bank of America’s (NYSE:BAC) mortgage settlement plan. However, the sector stocks are starting to recover after the FOMC minutes revealed no new groundbreaking data points.

Additionally, insurance stocks (NYSE:KIE) which rallied hard yesterday are selling off as traders take profits on the quick gains. Although initial damage estimates from Hurricane Irene were less than worst case scenarios, final tallies are not close to being calculated. Don’t Miss: 8 Retail Stocks Flying Higher After Hurricane Irene.

Here are how financial stocks are performing now:

Bank of America (NYSE:BAC) -2.6%, Citigroup (NYSE:C) -1%, JPMorgan Chase (NYSE:JPM) -1.3%, Goldman Sachs Group (NYSE:GS) -0.75%, Morgan Stanley (NYSE:MS) -0.75%, Allstate Corporation (NYSE:ALL) -1%, The Traveler’s Companies (NYSE:TRV) -0.6%, and Hartford Financial Services (NYSE:HIG) -.06%.