Bank stocks really took a beating this week, as market uncertainties drove many of the large banking stocks towards levels we have not seen in months. Citigroup closed the day on Friday at $3.95 a share, just 4 cents higher than the low of the day. Although it was nowhere near the 52 week low, a lot of money was lost in the banking sector last week.

Citigroup will report their earnings on Monday, followed by Bank of America on Tuesday, and Wells Fargo Wednesday. Analysts think that even if earnings are better than expected, the banking sector will continue to under perform the market as many uncertainties remain. Jefferies Managing Director, Art Hogan, explained, “It’s the dark cloud that is going to hang over the sector until we get some clarity. Quite candidly, you may look at these banks, like Citigroup, and when they report they may have fine numbers, but you may not get any lift because you still have this great unknown”.

Bank of America’s stock didn’t fair much better this last week, closing on Friday at $11.98 per share. It actually hit a fresh 52 week low on continued uncertainties in the foreclosure markets. Foreclosure freezes, and the uncertain prospects regarding quantitative easing have put a damper on it’s share price, which went from $13.55 on Wednesday all the way down to a close of $11.98 Friday.

If you are considering a long term investment, the banking sector may be a good bet if you have a stomach for risk.