Old Project Avalon Forum (ARCHIVE) - View Single Post - Citi Group to go.... Bank of America to follow

Dantheman62 · 01-15-2009, 03:53 PM

NEW YORK (Reuters) - Stocks tumbled on Thursday as news of a push by Bank of America (BAC - News) for more government aid added to worries about mounting credit losses in the financial sector.

Shares of Bank of America, the largest U.S. bank, were a top drag on the Dow, with a drop of 27 percent to $7.44. Shares of Citigroup (NYSE:C - News) tumbled 23 percent to $3.49 a day before the bank was due to report its quarterly results and new strategic direction.

Investors feared a need for more government aid in the financial sector pointed to mounting credit losses as the year-long recession deepens. The S&P financial index (^GSPF - News) fell 7.6 percent.

"I think it's tremendously disappointing that the banks continue to flounder," said Carl Birkelbach, head of Birkelbach Management in Chicago.

"What's going on here is that the first batch of the (financial rescue bailout) funds was supposed to put out the fire, but now it looks like the fire is coming up again."

01-15-2009, 03:53 PM	#2
Dantheman62 Avalon Senior Member Join Date: Sep 2008 Location: So. Cal. U.S. Posts: 4,205	Re: Citi Group to go.... Bank of America to follow NEW YORK (Reuters) - Stocks tumbled on Thursday as news of a push by Bank of America (BAC - News) for more government aid added to worries about mounting credit losses in the financial sector. Shares of Bank of America, the largest U.S. bank, were a top drag on the Dow, with a drop of 27 percent to $7.44. Shares of Citigroup (NYSE:C - News) tumbled 23 percent to $3.49 a day before the bank was due to report its quarterly results and new strategic direction. Investors feared a need for more government aid in the financial sector pointed to mounting credit losses as the year-long recession deepens. The S&P financial index (^GSPF - News) fell 7.6 percent. "I think it's tremendously disappointing that the banks continue to flounder," said Carl Birkelbach, head of Birkelbach Management in Chicago. "What's going on here is that the first batch of the (financial rescue bailout) funds was supposed to put out the fire, but now it looks like the fire is coming up again."