Live Blog: Market in Freefall (UPDATED 8/9)
The downgrade of the credit rating of the United States on Friday has sent markets plummeting the world over. Some crucial news and headlines on this market turmoil for bankers:
AUGUST 9, 2011
2:30 p.m. ET: Markets seems to be holding up. Dow remains positive.
2:27 p.m. ET: Not much love from the Federal Reserve. Fed gives no indication that it will start purchasing securities again. How bad is the economy, according to the Fed? “The Committee currently anticipates that economic conditions–including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013.” That’s another two years, folks.
1:41 p.m. ET: Bank indexes trading +4% higher.
10:16 a.m. ET: The NYSE Financial Index (NYK.ID) continues to climb; index is currently more than 3.4% higher.
10:11 a.m. ET: Bank stocks are racing. JPM is up +3.4%; WFC +4.4%; C +10%; HBAN +3.4%. KBW Bank index is +3.4%.
9:52 a.m. ET: Markets open higher with the Dow currently up about 0.72%.
AUGUST 8, 2011
2:53 PM ET: Bank of America tells Fox Business it has no need to raise capital, per a DJN headline. Bank of America shares now at $6.74.
2:48 p.m. ET: The NYSE Financial index down 5.37% at midday, while the KBW Bank index was off 6.62%.
2:46 p.m. ET: A Goldman Sachs Group Inc. research team led by economist Jan Hatzius said in a note to investors that “S&P has indicated that it would not immediately downgrade any banks or broker dealers in relation to a sovereign downgrade” although “Moody’s has indicated that it might in the event that it downgraded its U.S. Sovereign rating.” Are downgrades in the offering?
2:44 p.m. ET: WFC hits its 52-week low at $23.02.
2:39 p.m. ET: Markets seem to be turning after hitting a trough. Dow is climbing back, but are still down by more than 4% today.
2:38 p.m. ET: Credit-default swaps on Bank of America Corp. (BAC), the nation’s biggest bank by assets, soared to the highest since May 2009, while contracts tied to Morgan Stanley debt increased the most since May 2010. Swaps on insurers Hartford Financial Services Group Inc., MetLife Inc. and Prudential Financial Inc. rose, while a benchmark gauge of corporate credit risk climbed to the highest since September 2010. (Bloomberg)
