Financial stocks fell on Tuesday, triggered by renewed concerns about the economy.

The Financial Select Sector SPDR exchange traded fund, which tracks financial stocks fell 0.61 points, or 2.3 percent to 25.53.

Oppenheimer analyst Meredith Whitney cut her profit estimates for big U.S. banks in a clients' note dated May 19. She noted that the credit crisis is far from over and expects writedowns even bigger that what banks have previously reported.

MF Global Ltd fell more than 6 percent on Tuesday after it sought as much as $300 million from buyout firm J.C. Flowers & Co to pay off debt. MF Global will use the funds to refinance a $1.4 billion bridge loan.

U.S. mortgage finance companies Fannie Mae and Freddie Mac dropped more than 4 percent and 2.5 percent respectively after Senate lawmakers agreed today to pass legislation to help the ailing housing market. The laws call for stricter rules for the government sponsored mortgage companies.

Shares of insurer American International Group fell 2.1 percent. Capital One was down 3.8 percent. Citigroup shares were down 3.8 percent. Bank of America fell 2 percent. JPMorgan Chase shares fell 5 percent. Merrill Lynch was down 2.9 percent.