Jim Cramer thinks now is a terrific time to own financials. He believes a confluence of events are coming together that should generate tailwinds.» Read More
Goldman Sachs and Morgan Stanley will change their status to bank holding companies, allowing them to take deposits and bolster their capital. This means a future of stricter regulation, less leverage and probably lower returns.
A $700 billion financial rescue plan was sent to Congress Saturday, and Democrats moved quickly to propose changes—including possible help for homeowners and a salary cap for CEOs.
The U.S. Treasury and Federal Reserve have pulled out their financial jumper cables, but it's the details that will determine whether their massive bailout plan will recharge the markets and economy. In the week ahead, the markets will focus on how the multi-leveled rescue package is taking shape in Washington.
The past 14 days have left the financial industry wounded like never before. Who are the new winners on Wall Street?
For the historic week ending Friday, September 19, 2008, the major U.S. Indices managed to close mixed and almost flat after one of the most volatile trading weeks ever, driven by the collapse of investment bank, Lehman Brothers, enormous government actions around the globe, and billion dollar deal making. In one week, the government bailed out AIG, pumped funds into money markets, and banned short selling of financials - all while keeping the Fed Funds target unchanged and taking unprecedented actions to halt the liquidity crisis. The CBOE Volatility Index (VIX) surpassed the benchmark level of 30, hitting an intraday high of 42.16 on Thursday, its highest level since 10/2002. The major indices were all up and down +/- 3% for 4 of the past 5 days. The Dow posted a 2 day point move of more than 778 points as of Friday’s close, after plummeting 811 between Monday and Wednesday and hitting 10,609.66, its lowest level since 11/9/2005. On Friday, The Nasdaq Composite recorded a 2-day point move of greater than 175 points after it closed down 109.05 points on Wednesday, its first triple digit decline for one day since it began trading after the 9/11 attacks. The S&P 500 flirted with record territory closing up 98.7 over the last two days, marking its biggest 2-day point move since 3/16/2000, the largest 2-day point move ever.
This week's wild ride on Wall Street literally mimicked a rollercoaster ride: a couple of stomach-turning drops before coasting to the end and dropping you off exactly where you started. After being down by nearly 1000 points at Wednesday's close, the Dow clawed back those 1000 points in the following two days leaving the blue-chip index off just about 40 points from where it ended last Friday!
If you are one of the many investors having trouble stomaching the big and wild swings, now may be a good time to scale back on your level of risk.
As details of the government's belated "Federal Toxic Landfill Act" emerge -- that is, the rescue plan put forth by Treasury Secretary Hank Paulson -- many thoughts come to mind but none more often than how ticked-off the troops at the Thundering Herd must be...
Investment banks are out, and a new breed of bank is in.
While the debate is on whether stocks are at a bottom, there might be a silver lining to the current financial crisis. Wednesday marked the 12th time the Dow & S&P have both been down by more than 7% over the same 3-day period. Whenever that's happened in the past, it's usually been followed by major increases--even a month later.
Don't let volatility scare you out of this market. There are opportunities to be had.
Turmoil in the financial markets has the fingers of blame pointing every which way. In a first on CNBC interview Dylan Ratigan takes aim squarely at S&P.
But late news of possible deals involving Morgan Stanley and Washington Mutual might help ease market jitters on Thursday.
Cramer's been waiting for this federal regulator to stop the abusive short selling that's hurt so many stocks. At last, Chairman Christopher Cox has stepped up.
Significant losses that Lehman Brothers suffered from its part of the acquisition of a national apartment portfolio helped to bring down the investment bank, reports the NY Times.
What banks are worth buying?
Former Allstate CEO Edward Liddy will be the new CEO of AIG, which was rescued by an $85 billion loan from the Fed, in exchange for an 79.9% stake in itself.
The unprecedented government rescue of insurance giant AIG calms the market's angst, but the question is whether credit markets will cooperate with the Fed and what other shoes are there left to drop.
American International Group will avoid bankruptcy with the help of an $85 billion bridge loan from the federal government, in exchange for an 80 percent stake in itself, sources told CNBC.
Plus, debating Merrill Lynch CEO John Thain's potential severance package.