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Bank Shares Fall as Greek Turmoil Undermines Confidence

A fresh round of concerns that Greece may leave the euro zone sent U.S. stock markets into a dizzying tumble Monday.

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After some lift in recent weeks, the Dow Jones Industrial Average fell 125.25 points to close by end of day at 12,695, along with shares for the nation's four largest lenders.

Stocks for ""Bank of America"":https://www.bankofamerica.com/ fell 2.65 percent to arrive at $7.35 per share by end of day, with ""Citigroup"":http://www.citigroup.com/citi/ down 4.12 percent at $28.14 per share.

""JPMorgan Chase"":http://www.jpmorganchase.com/corporate/Home/home.htm slid 3.17 percent to hit $35.79 per share, likely fallout from a stunning $2 billion loss in swaps. Stocks for ""Wells Fargo"":https://www.wellsfargo.com/ fell back 2.70 percent to arrive at $32.41 per share.

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Media outlets chalked up much of the market trouble to gridlock in Greece, where leftist parties refuse to form a coalition government with centrist and conservative factions.

The deal reportedly involves a Syriza, a leftwing bloc opposed to further austerity measures that may parlay slashes to Greek social services for $170 billion in bailout funds under a package jointly agreed-to by the European Union and ""International Monetary Fund"":http://www.imf.org/external/index.htm, according to _Reuters_.

Turmoil continues to rustle member states in Europe, leaving many to speculate that a failure to reach a deal in Greece could force the debt-straddled Mediterranean country to leave the euro currency ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô a first for an exclusive club known for tough membership requirements.

With many investors fleeing debt auctions in Europe for the safe haven of U.S. Treasury debt, analysts say that Treasury yield will continue to fall lower, pressuring interest rates for mortgage loans stateside.

""Greg McBride"":http://www.bankrate.com/blogs/federal-reserve/about-greg-mcbride-cfa.aspx, a senior financial analyst with finance Web site ""Bankrate.com"":http://www.bankrate.com/, recently told us that ""heightened anxiety about Europe's debt woes is fueling demand for high-quality U.S. government debt.

""As long as nervousness persists,"" he added, ""you can expect mortgage rates to remain in this now familiar record low territory.""

About Author: Ryan Schuette

Ryan Schuette is a journalist, cartoonist, and social entrepreneur with several years of experience in real-estate news, international reporting, and business management. He currently lives in the Washington, D.C., area, where he freelances for DS News and MReport.
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