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Published October 6, 2008 at 5:28 PM
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The Dow closed down 369.88 points on Monday, and investors let out a sigh of relief, figuring it could have been much worse. After all, for a moment on Monday, the Dow dropped a jaw-dropping 800.06 points -- its biggest intraday fall ever -- as nervous investors were spooked that the credit crisis has deepened around the world as European banks stumbled. Financials continued to make deals either to weather possible worsening conditions or just to capitalize on the declining market. Overall, the Dow closed at 9,955.50 (the first time below 10,000 in five years) while the Nasdaq declined 83.56 to 1,862.96. Here's a look at financial deals that had some impact on Monday's market:
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- Citigroup Inc. filed suit against Wells Fargo & Co. for its $15.1 billion takeover offer for Wachovia Corp. The suit claims the deal violates Citi's agreement to buy a portion of the
Charlotte, N.C.-based bank under a previous deal. Citigroup seeks more than $20 billion in compensatory
damages and $40 billion in punitive damages, claiming Wells Fargo and Wachovia interfered with its bid, according to a complaint filed Monday in New York State Supreme Court in Manhattan.
- Meanwhile, troubled European bank Fortis SA/NV sold its Belgian operations to France's BNP Paribas SA for €14.5 billion ($19.7 billion) in cash and stock. The deal was brokered by the Belgian government along with Luxembourg to bring a deal together, which came days after the Netherlands nationalized the Dutch assets of the troubled Dutch-Belgian financial group.
- Lastly, Japanese investment bank Nomura Holdings Inc. secured its acquisition of more Lehman Brothers Holdings Inc.'s assets. The deal finalizes Nomura's purchase of Lehman's Indian back-office operations. Nomura said it will buy Lehman Brothers Services India Pte. Ltd., Lehman Brothers Financial Services (India) Pte. Ltd. and Lehman Brothers Structured Finance Services Pte. Ltd., all of Mumbai.
- Gerald Magpily
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. |
43.49 |
44.00 |
-1.90 |
151.23B |
| Merrill Lynch & Co. |
25.09 |
24.20 |
-2.47 |
38.00B |
| Goldman Sachs Group Inc. |
122.10 |
124.00 |
-4.00 |
48.83B |
| Morgan Stanley |
22.49 |
23.50 |
-0.42 |
94.80B |
| Citigroup Inc. |
17.23 |
17.41 |
-0.94 |
94.80B |
| Fannie Mae |
1.12 |
1.31 |
-0.03 |
1.4B |
| Freddie Mac |
1.26 |
1.41 |
-0.08 |
912.29M
|
| Bank of America Corp. |
31.78 |
32.22 |
-2.26 |
146.93B |
| Wachovia Corp. |
5.74 |
5.78 |
-0.43 |
12.48B |
| Wells Fargo & Co. |
33.30 |
33.64 |
-0.92 |
111.31B |
| Sovereign Bancorp, Inc. |
5.19 |
5.62 |
-0.22 |
3.72B |
| National City Corp. |
2.57 |
2.57 |
-0.95 |
5.38B |
| Fifth Third Bancorp |
12.25 |
12.16 |
-1.06 |
7.02B |
| Capital One Financial Corp. |
43.00 |
41.69 |
-3.21 |
18.21B |
| US Bancorp |
33.73 |
34.80 |
-0.26 |
60.62B |
| Regions Financial Corp. |
12.01 |
12.13 |
-1.39 |
8.43B |
| KeyCorp |
11.25 |
11.79 |
-0.76 |
5.83B |
| American International Group Inc. |
3.43 |
3.87 |
0.01 |
10.41B |
Source: The Deal |
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