Markets were down Wednesday. The Dow fell 172.28 points to 8,842.82, the S&P 500 slipped 20.12 points to 914.58, and the Nasdaq declined 39.68 points to 1,612.70. Financial stocks were mostly down as Oppenheimer & Co. bank analyst Meredith Whitney
warned that U.S. banks will, yet again, have to raise capital in 2009 due to credit rating downgrades on mortgage-related securities.
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In the report by CNBC, Whitney forcasted loss provisions for J.P. Morgan Chase & Co., Bank of America Corp., Citigroup Inc. and Wells Fargo & Co. Bank of America's stock was down as the bank
confirmed it has sold 5.6 billion shares in China Construction Bank Corp., raising $2.8 billion. Meanwhile, BB&T Corp.'s stock was down. Apparently the bank i
s positioned to continue buying independent insurance agencies, according to American Banker. The bank acquired two agencies on Dec. 31 and 11 in total for 2008. Morgan Stanley and Goldman, Sachs & Co. stocks are down.
Reuters reports that hedge funds are steering clear of investments in the larger banks."The Lehman bankruptcy ... led many hedge funds to flee the two largest prime brokers, Morgan Stanley and Goldman, for the perceived safety of the universal banks," said BersteinResearch analyst Brad Hintz.
- Maria Woehr
Troubled Wall Street
Prices at approximately 10:30 am EST |
| Name |
Price at
open |
Price
at 10:30 am |
Change |
Mkt cap |
| J.P. Morgan Chase & Co. |
29.15 |
28.89 |
-0.99 |
107827.81 |
| Goldman Sachs Group Inc. |
86.91 |
87.02 |
-1.69 |
34411.35 |
| Morgan Stanley |
19.07 |
19.09 |
-0.49 |
20273.26 |
| Citigroup Inc. |
7.22 |
7.26 |
-0.20 |
39563.66 |
| Fannie Mae |
0.8098 |
0.81 |
-0.04 |
871.73 |
| Freddie Mac |
0.81 |
0.82 |
-0.04 |
530.67 |
| Bank of America Corp. |
14.11 |
13.96 |
-0.32 |
70045.41 |
| Wells Fargo & Co. |
27.08 |
26.25 |
-1.29 |
87287.66 |
| American International Group Inc. |
1.72 |
1.66 |
-0.08 |
4465.30 |
| Sovereign Bancorp Inc. |
3.08 |
3.02 |
-0.08 |
2005.11 |
| Fifth Third Bancorp |
8.24 |
8.13 |
-0.32 |
4694.56 |
| Capital One Financial Corp. |
33.01 |
32.67 |
-1.47 |
12795.47 |
| SunTrust Banks Inc. |
27.65 |
27.07 |
-1.23 |
9585.74 |
| U.S. Bancorp |
23.51 |
23.32 |
-0.43 |
40916.76 |
| Regions Financial Corp. |
8.55 |
8.42 |
-0.41 |
5826.27 |
| KeyCorp |
8.43 |
8.42 |
-0.27 |
4167.97 |
| PNC Financial Services |
48.16 |
48.95 |
0.31 |
17041.53 |
| BB&T Corp. |
24.68 |
24.00 |
-1.21 |
13259.70 |
| Bank of New York Mellon Corp. |
27.05 |
27.25 |
-0.44 |
31271.19 |
| State Street Corp. |
42.99 |
44.68 |
0.41 |
19299.66 |
Source: The Deal |
Comments
Capital is out there but you have to really dig for it and be flexible. Community Banks are feeling the immediate need. When you suggest to them they get capital in good times they are first to say "What are you Crazy" "We Don't Need Any"!