UPDATE 3: C -9.7%, BAC -9.3%, MS -7.1% & CDS blowing too in Financials (GS +60 at 387bps, MS +53 at 547, BAC +34 at 451, C +32 at 347...and Insurers (AIG +70 at 540, HIG +45 at 465, MET +27 at 390, PRU +35 at 340, and BRK +20 at 270)



UPDATE 2: Citi, MS, and BofA all down 8%!!!

UPDATE 1: Citi, MS, and BofA all down over 7% now, XLF -3.5%!!

In the last hour, financials have accelerated to the downside very rapidly. It seems perhaps that the credit markets were on to something and now equities are realizing that something is definitely worrying market professionals.

MS -5.7% at $12.7 (from highs just above $14 this morning as Cramer recommended).

BAC -4.75% at $5.82 (lows since MAR09)

GS -3% at $91.7

C -6%

XLF worst performing sector -2.5% (Is Kass still renting?)









UPDATED Chart (1445ET)