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Major Selloff in Equitites on a Dismal News Day

Major selloff in equities on a dismal news day (MarketWatch) The bad news today was so varied that it's difficult to pick a single source of tribulation as the cause of a major decline in equities, both in the US and abroad. The day began with the beginnings of a major crisis on the Korean Peninsula — with North and South Korea exchanging mortar fire. Then, there were speculations about political instability in Ireland, driven by the broader story of a threatening European debt crisis. Next, a broadening of investigation in the United States into insider trading, which now includes large market players SAC Capital and Janus. Finally, a lowered forecast for domestic growth from the Federal Reserve.

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Investigation Broadens: Big Players Janus Capital & SAC Now in the Mix (CNBC.com with Reuters) Janus Capital, an investment company with $160 billion of assets under management has received an inquiry from federal regulators, presumably in connection to the ongoing insider trading probe, although it remains unclear at this time whether Janus is currently under subpoena. SAC Capital received a subpoena today, it has confirmed through a letter sent to investors. A third firm, Wellington Management, is also reported to have received an inquiry request similar to Janus's. The investigative net appears to be widening, and the heat is getting higher.