NEW YORK (AFX) -- Financial stocks accelerated losses at the close Tuesday after the Federal Open Market Committee raised interest rates another quarter-point, as expected, and indicated more were on the way.
It is the 15th such hike since the Fed began to increase rates from 1% in June 2004. The latest 0.25% move higher brings rates to 4.75%. Some economists had believed this would be the last rate increase. .
In corporate news, Citigroup is reportedly expected to submit a cash bid to acquire some or all of Finansbank, Turkey's eighth-largest bank by assets, in a transaction that could be valued at $5 billion or more.
The National Bank of Greece and Citigroup are the final two bidders, The Wall Street Journal reported in its online edition, citing unnamed people familiar with the matter. .
Citigroup shares fell 4 cents to finish at $47.60.
Broadly in the sector, the Amex Securities Broker/Dealer index dropped 1.4% to close at 223.26 points, the Philadelphia Bank Index lost 1% to 106.65 points and the S&P Insurance Index eased 1.1% to 351.18 points. This story was supplied by MarketWatch. For further information see www.marketwatch.com.