Credit Crunch: More To Come |
| Forbes - Nov 2, 2007 |
Thursday brought new signs that Wall Street faces a fresh round of wrenching asset write-downs and the need to shore up shrinking capital levels. That sent markets into a tailspin, with the Dow Jones industrial average plunging 362 points. Financial stocks as a group fell 5%. So much for the Fed.
The main culprit: Citigroup (nyse: C - news - people ). Its shares fell more than 7% at one point, after an analyst said Citi needed to raise $30 billion in capital, possibly by cutting its dividend, and raised concerns about the firm's bloated balance sheet.
The note by Meredith Whitney of CIBC World Markets supports the argument that banks are maintaining inadequate capital levels given the risks they are assuming on their trading books, particularly in their out-sized exposures to the credit derivatives that have gone haywire in the recent market tumult.
Read Full Article from Forbes
- Posted: 2007-11-02 10:22:49
| More Stock Investor Place Financial News |
 |
|
|
|
| Stock Investor Place Financial News Archive |
|
|
|
