Financial stocks could have one of their worst days in decades today.
A number of the largest financial stocks are trading off by huge amounts. Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) have been off over 30% on news that the federal government may take them over, leaving owners of common shares with nothing.
Analyst concerns about large write-downs in the second quarter are driving bank stocks down. Wachovia (NYSE: WB) is down 12% on a downgrade by Fox-Pitt Kelton. Washington Mutual (NYSE: WM) is down 9% on troubles radiating from the mortgage markets.
Wall Street remains unconvinced that Lehman Bros. (NYSE: LEH) can keep its largest customers, which could push the brokerage in the direction which destroyed Bear Stearns. Lehman is down 12%.
Prepare for the slaughter. It's looking ugly out there.
Douglas A. McIntyre is an editor at 247wallst.com.
Big Losers: 15 large stocks that have plummeted
What is going on with the markets? What should you do about it?
Closing Bell: The meltdown that almost was . . . NCC, HIG, SAP, DNDN
Reader Comments (Page 1 of 1)
7-11-2008 @ 10:45AM
Tom said...
Looks like a serious correction is underway. Now let's see if the "free market" people run to the government and beg for bailouts!
7-11-2008 @ 10:56AM
Jim said...
RELAX, this all an illusion created by WHINEY Democrats for political reasons.
7-12-2008 @ 1:27AM
jim said...
Jim, you're nothing but a leftwinged jackal! I saw you other comments. You are a simpleton democrat.