Hong Kong dropped 12 percent to its lowest level in 5 years, S&P futures have swung in a 60 point range this morning, though they are well off their lows.
The US government will 1) take a $250 billion equity stake in the form of preferred shares which cannot be redeemed for three years, 2) guarantee bank-to-bank lending, and 3) remove deposit insurance levels for non-interest bearing accounts.
European nations scrambled on Sunday night to prevent a growing credit crisis from bringing down major banks and alarming savers as troubles in financial markets spread around the world, accelerating economic downturns on three continents, the New York Times reported.
Want graphic evidence of how confused traders are? Stock futures rallied for a couple minutes on the Wells Fargo/Wachovia deal, then quickly dropped. Futures dropped again as non-farm payrolls came out below expectations, then rallied back a few minutes later.
Can the Senate provide enough add-ons (raising levels of insurance in your bank account) and tax breaks to provide cover for House Republicans? That's the issue. No doubt the Senate will pass the bill.
In a mood reminiscent of WaMu-JP Morgan, the FDIC says Citi is buying Wachovia's banking operations, and assume the senior and subordinated debt.
The Fed, the European Central Bank, Bank of England, Bank of Japan, Bank of Canada, and the Swiss National Bank are all pumping dollars into the global system. Fed made an additional $180 billion available to central banks to lend out.
Stocks had their worst selloff since the Sept. 11 attacks in 2001, with the Dow plummeting more than 500 points amid escalating fear about a collapse of AIG.
Stocks fell sharply at the opening bell Monday after a trifecta of Wall Street pain: Lehman Brothers filed for bankruptcy, Merrill Lynch was bought by Bank of America and AIG asked the Fed for short-term financing.
Stocks fell sharply at the opening bell Monday after a trifecta of Wall Street pain: Lehman Brothers filed for bankruptcy, Merrill Lynch was bought by Bank of America and AIG asked the Fed for short-term financing.
Stocks looked set to plummet Monday after a trifecta of Wall Street pain: Lehman Brothers filed for bankruptcy, Merrill Lynch was bought by Bank of America and AIG asked the Fed for short-term financing.
Nearly 15 firms have downgraded Goldman over the past few weeks. Does that suggest now is the time to buy?
For the week ending Friday, September 2, 2008, the major U.S. Indices finished up for a week marked with the demise of more financial stocks, sluggish Retail Sales data, a steeper than expected decline in Pending Home Sales, and a looming hurricane in the Gulf of Mexico. Volatility continues to dominate the markets as the Dow posted a 2 day consecutive up/down point move of 569 points on Monday and Tuesday (up 289 and then down 280), its largest 2-day up/down point swing since June 6. The CBOE Volatility Index (VIX) which measures market uncertainty reached an intraday high of 26.67 on Friday.
If any ties to the former Nazi Germany are unacceptable, I assume the following organizations are also off the table: Deutsche Bank, IBM, Volkswagon, BMW, Mercedes Benz, Siemens and BASF.
After the close yesterday, RBC Capital put out a note: "Next Credit Shoe to Drop on Banking Industry: We believe commercial and industrial loans (C&I), commercial real estate and non-resi construction loans will be the next credit problems for the banking industry brought on by the weakening in the US and Global economies."
As the value of home mortgages crumbles by the day, Wall Street has hoped that commercial real estate loans would stay clear of the storm, the New York Times reported.