(REUTERS) - Bank stocks led a selloff on Wall Street on Thursday after the European Central Bank tempered hopes that policy-makers were priming a much anticipated financial bazooka, while European banks were told to increase their capital by 114.7 billion euros ($152.9 billion).

The Dow Jones industrial average dropped 162.95 points, or 1.34 percent, to 12,033.42. The Standard & Poor's 500 Index slid 21.10 points, or 1.67 percent, to 1,239.91. The Nasdaq Composite Index lost 39.26 points, or 1.48 percent, to 2,609.95. (Reporting by Edward Krudy; Editing by Jan Paschal)