U.S. stocks fell, extending the worst weekly loss for the Standard & Poor’s 500 Index since March, as Federal Deposit Insurance Corp. Chairman Sheila Bair predicted the heads of some banks may be replaced and a drop in oil dragged down energy shares. Treasuries fell and the dollar gained.

Zions Bancorporation, Bank of America Corp. and Fifth Third Bancorp led declines in 23 of 24 companies in the KBW Bank Index after Bair said some chief executive officers may need to be fired in the next few months. Chevron Corp. and Exxon Mobil Corp. retreated as oil slid from a six-month high of $60 a barrel. FirstEnergy Corp. fell 9.6 percent, leading utilities lower, after Barclays Plc cut its rating.

The S&P 500 slid 1.1 percent to 882.88 at 4:53 p.m. in New York, capping a weekly tumble of 5 percent. The Dow Jones Industrial Average decreased 62.68 points, or 0.8 percent, to 8,268.64.

The dollar gained against most major currencies. Almost three stocks fell for each that rose on the New York Stock Exchange.

(Bloomberg.com)