U.S. and European banks are both lower, and with reason:
1) UBS, Credit Suisse and Deutsche Bank have acknowledged they are part of a probe by the U.S. government into whether they misrepresented the risks from mortgage-backed securities. The rating agencies — Standard & Poor's, Moody's Investors Service and Fitch Ratings — have also been subpoened by NY AG Andrew Cuomo, along with Citigroup, Goldman Sachs, Morgan Stanley, and Merrill Lynch (now part of Bank of America.
2) risks in the Eurozone are still high, and
3) the regulatory reform bill is still taking shape.