U.S. securities regulators issued an emergency rule on Tuesday to limit certain types of short selling in major financial firms, including Fannie Mae <FNM.N> and Freddie Mac <FRE.N>.

By Rachelle Younglai and Emily Chasan

Robert Steel has his work cut out for him and he knows it.

Shares of investment banks tumbled Friday amid continued worries about the financial stability of Lehman Brothers Holdings Inc. and mortgage companies Fannie Mae and Freddie Mac.

Shares of investment banks tumbled Friday morning as the broader market sank amid worries government-sponsored mortgage giants Fannie Mae and Freddie Mac might need a government bailout.

General Electric Co. announced Thursday that it wants to spin off its iconic lighting and appliance businesses, the latest aggressive move by one of the world's largest companies to reshape its portfolio to focus on faster growth businesses.

On his first day as the new CEO of Wachovia Corp., Robert Steel saw the stock tumble to a 17-year low and faced questions about his ability to rescue the nation's fourth-largest bank from its own missteps and the roiling credit market.

By Jonathan Stempel

By Jonathan Stempel and Dan Wilchins

Wachovia Corp <WB.N>, the fourth-largest U.S. bank, named senior Treasury Department official Robert Steel chief executive, and said mortgage and legal problems would result in a $2.6 billion to $2.8 billion second-quarter loss, much larger than many analysts expected.

NEW YORK (Reuters) - Wachovia Corp <WB.N>, the fourth-largest U.S. bank, has narrowed its search for a new chief executive to a short list led by Treasury Undersecretary Robert Steel and GMAC LLC Chief Executive Alvaro de Molina, the Wall Street Journal said on Wednesday.

Fitch Ratings on Wednesday affirmed its long-term issuer-default ratings for investment banks Goldman Sachs Group Inc., Lehman Brothers Holdings Inc. and Morgan Stanley, while placing Merrill Lynch & Co.'s rating on negative watch.

NEW YORK — U.S. financial companies have lost more than $1 trillion in value this year, and yet another decline on Monday shows concerns aren't going away soon.

Though economic uncertainty has stymied activity in the initial public offering market, Credit Suisse Securities, Merrill Lynch & Co. and Wachovia Securities each managed to complete 10 deals during the first half of the year, more than any other underwriter.

Goldman Sachs said the European banks sector needs to raise about 60 billion to 90 billion euros, or withhold one year of dividends, to reach an aggregate Tier I ratio of 9 percent -- a level achieved by European banks that have recapitalized recently.