Bank shares fall in spite of assurances

WASHINGTON, July 16 (UPI) -- Assurances from U.S. regulators that the country's banks remains sound haven't quelled market jitters, analysts said.

Investors worry "there is another shoe to fall," Douglas S. Roberts, an analyst with Channel Capital Research told The Washington Post.

Federal Reserve Bank Chairman Ben Bernanke said Tuesday "our banking system is well-capitalized." And Federal Deposit Insurance Corp. Chairwoman Sheila Blair labeled the present state of banking "challenging, increasingly challenging."

But, she said, with five bank failures in 2008, "this is not a serious situation."

Wachovia bank spokeswoman Christy Phillips-Brown said Wachovia was on "solid footing … and is well-capitalized" while the bank acknowledged it was trying to raise $5.5 billion to shore up its reserves and cover second quarter losses.

Wachovia shares have fallen to a 17-year low.

But, it is not alone. The Standard & Poor's banking index has fallen 14 percent since Friday, the Post reported.

"There continues to be a number of people who are worried about the health of the financial system, and they are putting pressure on financial stocks," Andy Brooks, head of stock trading at T. Rowe Price told the Post.