News of the passage of the $700 billion government financial rescue
package was not enough to scare the bears away on Wall Street as the
Dow Jones Industrial average capped of a tumultuous week with a 157.47
point drop to close at 10,325.38 on Friday, due in part to the jobs
report that employers cut 159,000 jobs in September, the ninth straight
monthly decline. The battered financial sector also continued to take a
beating, partly on fears that the bailout may not help to thaw out
credit markets.
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Citigroup Inc. was hit particularly hard Friday, declining 18.44% to
close at $18.35 per share as its plans to acquire Wachovia Corp. were
trumped by Wells Fargo & Co., which agreed to buy the bank for
$15.1 billion. Citi blasted the Wells Fargo-Wachovia deal, saying it
constitutes breach of contract as Citi had an exclusivity agreement
with the target.
Wells Fargo took a slight hit on the news that it
is taking on the troubled bank, as its stock fell 1.71% to close at
$34.56. Wachovia reaped the benefits of the news, soaring 58.82% to
close at $6.21 per share.
American Insurance Group Inc.
shareholders did not seem thrilled with asset sales that new chairman
and CEO Edward Liddy discussed Friday, as the stock slipped 3.75% to
close at $3.85 per share. AIG, as expected, will seek to retain its core
U.S. property and casualty business and its foreign general insurance
business, and sell all other assets. Some analysts, however, believe
these sales may not be enough to cover its $85 billion Federal Reserve
loan. - Michael Rudnick
Troubled Wall Street
Prices at 4:00 pm EDT |
| Name |
Price at
open |
Price
at 4:00pm |
Change |
Mkt cap |
| J.P. Morgan Chase & Co. |
50.31 |
45.90 |
-3.95 |
157.76B |
| Merrill Lynch & Co. |
28.00 |
26.67 |
-0.73 |
40.78B |
| Goldman Sachs Group Inc. |
132.89 |
128.00 |
-3.54 |
50.41B |
| Morgan Stanley |
24.40 |
23.92 |
0.71 |
26.53B |
| Citigroup Inc. |
19.45 |
18.35 |
-4.15 |
99.92B |
| Fannie Mae |
1.68 |
1.34 |
-0.22 |
1.43B |
| Freddie Mac |
1.87 |
1.49 |
-0.31 |
1.43B |
| Bank of America Corp. |
37.86 |
34.48 |
-1.89 |
157.23B |
| Wachovia Corp. |
6.94 |
6.21 |
2.30 |
13.41B |
| Wells Fargo & Co. |
37.98 |
34.56 |
-0.60 |
114.36B |
| American International Group Inc. |
4.62 |
3.15 |
-0.14 |
10.38B |
Source: The Deal |
