Financials (XLF) Bloodied but Not Beaten

Financial Select Sector SPDR (NYSE: XLF) is holding up relatively well today despite a huge selloff in shares of JPMorgan (NYSE: JPM). JPM shares are is being beaten up because of a report in the New York Times today that suggests the 'London Whale' losses could total $9 billion. The $9 billion dollar loss is not confirmed and the exact amount of the trading loss remains unclear and will remain so until JPMorgan’s earns are reported next month. Previous estimates put the total loss at between $4-$6 billion.

In other sector news, investors are still shaking their heads after Barclays agreed to pay $350 million to settle with regulators on charges that they and other large banks manipulated the LIBOR rates. Other banks have yet to settle similar charges.

Given all the headwinds, many are surprised to see that XLF is only off by 1.68 percent.

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