A slew of mortgage stocks and related banks were rocked Monday after a downgrade at Citi renewed worries that the worst may be yet to come.
After Goldman Sachs downgraded Citi (C), its shares ended the trading session down $2.00, or 5.88%, to close at $32.
Freddie Mac (FRE) shares ended the day down $3.22, or 7.91%, to $37.50, chalking a new 52-week low after an analyst said the financier faced a subprime loss up to $5 billion.
Fannie Mae (FNM) dropped $3.11, or 7.64%, to $37.58, its lowest level in a decade, after receiving an analyst downgrade and price target cut.
Countrywide (CFC) stock plummeted $1.50, or 12.43%, to $10.57, a fresh 52-week low, and its lowest point in five years, thanks to ongoing liquidity concerns.
Both Wells Fargo (WFC) and Wachovia (WB) saw their price targets cut, leading to a near 2% drop at Wells, and a 2.63% drop at Wachovia, which briefly dipped below its 52-week low during the trading session.
Washington Mutual (WM) nosedived 7.27% to end the day at $18.49, briefly falling below its 52-week low as well.
Impac shares ended the session down 9 cents, or 11.84%, to finish at a meager 67 cents, sending many other REITs down in the process.
Among the declining mortgage REITs, shares of NovaStar Financial (NFI) fell 7.3% to $1.59, American Mortgage Acceptance Co. (AMC) dipped 5.1% to $3.51, and Thornburg Mortgage (TMA) was down 3.3% to $9.84.
Bank of America (BAC) lost another $1.55, or 3.5%, to end the day at $42.82, just above its 52-week low of $42.02.
And finally, shares of Pasadena, California-based mortgage lender IndyMac (IMB) were off 82 cents, or 8.14%, to $9.25, representing a new 52-week low.