The banking sector was in a sea of red by midday Tuesday following the overall market downturn on more negative news. Investors are looking for a safe haven for their money, fearing a General Motors Corp. bankruptcy, continuation of weak earnings and the housing industry asking the government for a housing stimulus. American International Group Inc. continues to slide as investors swallow news the day after an announcement of a bigger bailout package that would total $150 billion. Meanwhile, credit card company American Express Co. is down on news that it reorganized its corporate structure, receiving approval from the Federal Reserve to become a bank holding
company. The change will allow American Express to accept bank deposits in order to
raise cash as well as participate in the financial sector bailout. Lastly, Citigroup Inc. is down slightly on an announcement that it will launch a program that would result in $20 billion of mortgage refinancings. The program is aimed to save Citi the costly bill of owning homes with defaulted mortgages and provide a relief for struggling U.S. homeowners. - Gerald Magpily
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