The financial sector took another hit after Lehman Brothers filed for bankruptcy protection on Sunday and Wall Street scrambled to shore up the system.
Bank of America said it agreed to buy Merrill Lynch in an all-stock deal worth $50 billion, snagging the world's largest retail brokerage after one of the worst-ever weekends on Wall Street.
Despite all the trouble in financials right now, the sector as a whole has been outperforming since July.
Investors skittish about further losses in the financial industry have pounced on the American International Group, the beleaguered insurance company that has reported some of the biggest losses in the spreading credit crisis, said the New York Times.
Lehman Brothers, which is actively shopping the entire firm, is unlikely to remain independent much longer.
Until these great voids are filled, there will be no relief for investors.
Stocks slid into home plate with a late rally that bumped the Dow up nearly 170 points as oil flirted with $100 a barrel and the market was abuzz with speculation that a resolution for Lehman Brothers could happen within days.
Stocks swung between positive and negative territory as investors grappled for a direction with oil flirting with $100 a barrel and the market abuzz with speculation that a resolution for Lehman Brothers could happen within days.
Cramer says we're on the verge of another Great Depression.
Stocks swung between positive and negative territory as investors grappled for a direction with oil bouncing higher after its brush with $100 a barrel and the market abuzz with speculation that a resolution for Lehman Brothers could happen within days.
Shares of some of Wall Street's most venerable names took a beating Thursday as concerns mounted that banks faced more serious troubles ahead
Despite the the bailout of Freddie and Fannie and Lehman's questionable survival, the S&P 500 Financials Sector is still up over 20% since hitting a low in mid-July. Will the Financials stay above their July lows or fall back with the latest news? Here is the latest data on how short interest has changed over the past few months and where bets are being made.
Plus, Cramer makes calls on Disney and the impact of hedge funds on commodity stocks.
Not enough: that's the general verdict of the Street on the Lehman announcement. They pre-announced a loss of $5.92. They're selling a majority stake in its investment management division and spinning off commercial real estate assets into a separate public company.
The Lehman Brothers CEO missed every chance he had to save his firm.
The Dow tanked on Tuesday, as concern about Lehman Brothers' ability to raise much-needed capital battered all the financials.
Lehman is expected to release third-quarter results ahead of time after its stock plunged as much as 40% on Tuesday.
Stocks skidded Tuesday as worries about the housing and financial sectors came back with a vengeance. Lehman plunged 45 percent, dragging the S&P to its worst percentage decline since early 2007.
The Dow got a little bump at the opening bell but fell off the cliff into a triple-digit decline after pending-home sales dropped more than expected. Adding to the uncertainty in the market, Lehman Brothers fell to its lowest level in a decade amid market buzz that the brokerage is going to be unable to raise the capital it needs.
Investors are snapping up mortgage-backed securities, corporate bonds and Treasuries , which are offering better yields than stocks.