Another day. Another triple-digit loss. Investors bailed from the market as more layoffs in the financial sector surfaced in the wake of the weakened economy. The Dow closed Monday down 223.73, or 2.63%, to 8,273.58 while the Nasdaq declined 34.80, or 2.29%, to 1,482.05.
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Citigroup Inc. plans to lay off 50,000 while competitor J.P. Morgan Chase & Co. may cut 3,000 from its headcount. Meanwhile, the New York Post reports that CEO Lloyd Blankfein and six of his deputies will forgo their year-end bonuses. The numbers saved is unknown, but if last year's total compensation of Blankfein, two co-presidents and CFO are any barometer, the amount is likely huge. A large percentage of total compensation comprises bonus money. In 2007, Blankfein's total pay was $68.5 billion, co-presidents Jon Winkelried and Gary Cohn each earned $67.5 billion, and CFO David Viniar was paid $57.5 billion. All four will receive a salary of $600,000 in 2008.
Lastly, shares of life insurer Genworth Financial Inc. dropped 5% after the company said it would acquire small thrift InterBank fsb, with the hopes of receiving aid from the government's $700 billion bailout. - Gerald Magpily
Troubled Wall Street
Prices at close |
| Name |
Price at
open |
Price
at close |
Change |
Mkt cap |
| J.P. Morgan Chase & Co. |
33.82 |
32.77 |
-1.70 |
122.30B |
| Merrill Lynch & Co. |
12.94 |
11.78 |
-1.42 |
18.84B |
| Goldman Sachs Group Inc. |
64.79 |
62.49 |
-4.24 |
24.71B |
| Morgan Stanley |
11.64 |
11.22 |
-0.81 |
11.91B |
| Citigroup Inc. |
9.36 |
8.89 |
-0.63 |
48.44B |
| Fannie Mae |
0.55 |
0.45 |
-0.09 |
484.29M |
| Freddie Mac |
0.61 |
0.53 |
-0.14 |
342.99M |
| Bank of America Corp. |
16.21 |
15.03 |
-1.39 |
75.41B |
| Wachovia Corp. |
5.46 |
5.27 |
-0.22 |
11.38B |
| Wells Fargo & Co. |
28.19 |
27.83 |
-0.90 |
92.54B |
| American International Group Inc. |
2.09 |
1.91 |
-0.17 |
5.13B |
| Sovereign Bancorp Inc. |
2.34 |
2.23 |
-0.16 |
1.48B |
| National City Corp. |
2.31 |
2.20 |
-0.13 |
4.47B |
| Fifth Third Bancorp |
9.25 |
9.14 |
-0.40 |
5.27B |
| Capital One Financial Corp. |
30.02 |
29.87 |
-1.32 |
11.69B |
| SunTrust Banks Inc. |
32.99 |
31.56 |
-1.96 |
11.17B |
| U.S. Bancorp |
26.05 |
25.80 |
-0.50 |
45.26B |
| Regions Financial Corp. |
9.7 |
9.06 |
-0.61 |
6.26B |
| KeyCorp |
9.6 |
9.35 |
-0.25 |
4.62B |
| PNC Financial Services |
61.5 |
59.19 |
-3.15 |
20.60B |
| BB&T Corp. |
27.75 |
26.60 |
-1.45 |
14.69B |
| Bank of New York Mellon Corp. |
30.1 |
27.35 |
-2.89 |
31.38B |
| State Street Corp. |
38.36 |
36.92 |
-1.97 |
15.94B |
Source: The Deal |
