Banking-sector fears are back with a vengeance

[marmar]

from the WSJ:



By DAN FITZPATRICK


Fears about the health of the U.S. banking system are back in a big way.

Bank stocks plunged 11% Monday in their biggest one-day drop since April 2009, as investors questioned how well giant financial firms will weather a slowing economy and tumultuous markets after an unprecedented downgrade of U.S. debt.

Hardest hit was Bank of America Corp., which saw its stock tumble 20% and the cost of insuring its bonds against default surge 50%. Earlier this year, the bank was dangling a higher dividend before investors, but it has since dropped plans for a 2011 increase, people familiar with the matter said.

Also swooning were shares of Citigroup Inc., off 16%, and Morgan Stanley, down 14%. .............(more)

The complete piece is at: http://online.wsj.com/article/SB10001424053111904007304576496713161635184.html?mod=mktw

[xchrom]

1. Recommend

[kentuck]

2. What better time to ask for a bailout?

No problem. How much you need?

[benld74]

3. It is BECAUSE THEY still hold the big shit sandwich and

THEY know it cannot be covered up forever!

[mindem]

4. Let them sink.

No more too big to fail. Big banks ara a pain in the ass anyway.

[dgibby]

5. Wonder what that means for my mortgages.

BOA has the 1st, Citi has the 2nd, both fixed.

[Romulox]

6. They're talking about the "fear" of a diminishing share price, not a credit crunch

like in 2008.

Misleading.