G. J. Santoni argues that the stock prices of financial institutions, particularly savings and loan associations, are more sensitive to interest rate changes than the stock prices of industrial firms. This is, in large part, due to the greater degree of leverage employed by financial institutions. Moreover, savings and loan associations operate under legal constraints that require them to maintain portfolios of financial assets that are relatively long-lived compared with their financial liabilities, which further contributes to the interest rate sensitivity of their stock prices. In addition to discussing various measures of this interest rate risk exposure, Santoni estimates the sensitivity of the stock prices of banks, savings and loan associations, and industrial firms to changes in the interest rate over the period 1961-82. His results suggest that the stock prices of savings and loan associations are about two-and-a-half times more sensitive to interest rate changes than are stock prices of banks, and about five times more sensitive to such changes than are the stock prices of industrial firms.