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Wall Street tumbled to a three-year low on Wednesday after the rescue of AIG failed to calm a crisis of confidence in global markets, leaving banks scared to lend to each other.
Washington Mutual has put itself up for auction, people briefed on the matter told the New York Times.
What banks are worth buying?
Cramer makes the call on viewers' favorite stocks.
Stocks rallied at the close after the Federal Reserve held the line on interest rates and investors were encouraged that Lehman Brothers and American International Group might work out deals to improve their perilous financial situation.
U.S. stock index futures dropped as fears mounted over the capital position of American International Group.
Plus, have we hit a bottom in financials? What banks are worth buying?
After hours S&P cut its ratings on Washington Mutual into junk territory and Wells Fargo said it would take a loss due to its exposure to Lehman.
The Street has been making this distinction for months, and it is now accelerating. For example, look at some of the smaller regional banks that have less exposure to construction/real estate than others, and how they have performed in the last year:
Investors should prepare for the worst just in case it turns out that Ben Bernanke knows nothing yet again.
Top economists discuss the fate of Lehman Brothers and how the company's outcome will affect the stock market while the CEO of Ford restructures his company—focusing on improving fuel mileage and efficiency. Plus, Hurricane Ike is expected to strike the southern US coast early on Saturday, bringing a massive storm surge that could prove fatal for those who have not left the area. Following are today's top videos:
Despite all the trouble in financials right now, the sector as a whole has been outperforming since July.
Today marks the seventh year since the September 11 terrorist attacks—the Nymex and the White House obeserve a moment of silence to remember when the first plane hit the World Trade Center. Research in Motion's CEO talks about the company's new Blackberry—Bold. Following are today's top videos:
Following are the day’s biggest winners and losers. Find out why shares of Wells Fargo and Sunoco popped while Legg Mason and China Mobile dropped.
Cramer says we're on the verge of another Great Depression.
As we await the fate of Washington Mutual, the pipeline of troubled institutions is filling up. I mentioned Audit Integrity earlier this week in a post on Downey Financial, and later the firm reached out to me to explain that it considers Downey very risky from an accounting and governance perspective.
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.
Stocks closed with modest gains after rallying earlier on a drop in oil prices, but investors continued to worry about financial shares.
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."
A number of U.S. banks stand to gain after the government takeover of Fannie Mae and Freddie Mac, Dick Bove, analyst at Ladenburg Thalman & Co., told CNBC.