CANADA STOCKS-Banks, resources combine to pull TSX lower

Fri Jan 15, 2010 5:25pm EST
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* TSX falls 1.01 pct to 11,685.37; down 2.3 pct for week

* Miners, banks, oils all march lower

* Corporate results key focus (Adds details)

By Ka Yan Ng

TORONTO, Jan 15 (Reuters) - Toronto's main stock index took a broad hit on Friday, falling more than 1 percent as weakness in the energy, materials and banking groups combined to wipe out the last vestiges of the gains the index made as the new year dawned.

Commodity prices fell and bank shares were hit by concerns over a bank fee proposed by U.S. President Barack Obama, as well as by disappointing results from JPMorgan Chase & Co (JPM.N: Quote). [ID:nN13152862]

The proposed fee would see U.S. banks pay up to $117 billion to reimburse taxpayers for the government's financial bailout of the sector. [ID:nN13152862]

"There's discussion out there whether some Canadian banks might fall under this new bank tax in the United States," said Gareth Watson, an equity advisor at ScotiaMcLeod.

Also, deep fourth-quarter loan losses reported by JPMorgan raised concerns about earnings for the broader U.S. bank sector. [ID:nN15183524]   Continued...