Not too long ago, regional banks looked relatively well-positioned compared to larger banks, given that few plunged headlong into subprime-related markets. But the larger economy is taking a toll.

S&P will hold a conference call today to discuss its decision to downgrade a raft of regional banks. A handful, including Synovus, Citizens Republic and Huntington Bancshares, were cut to "junk." Wells Fargo, KeyCorp and Capital One were among those downgraded. CDS spreads widened in lockstep. According to Bloomberg, the specter of new regulation and increased economic and market volatility played into S&P's decision. It's clear to many that we have yet to see the bottom, as far as bank health is concerned.

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