Wall Street Plummets Over Bank Worries

Dow Jones Down 223 On News Of Quarterly Loan Losses From 3 Leading Banks

(AP)  Wall Street finished a turbulent week with another huge drop Friday after major banks warned of further losses on their debt portfolios, raising investor concerns that the credit market slump shows no sign of abating. The Dow Jones industrial average fell more than 220 points.

Bank of America Corp., JPMorgan Chase & Co. and Wachovia Corp. all said the ongoing credit crisis will cause another round of heavy losses during the fourth quarter. Financial institutions took big hits during the last quarter as losses from subprime mortgages hurt their balance sheets.

BofA said continued "market dislocations," including those related to securities it owns that are backed by loans, will affect its fourth-quarter results. The bank did not provide an estimate of how large the impact will be. JPMorgan said difficult conditions may cause a fourth-quarter writedown, but did not say how much.

Wachovia, the fourth-largest U.S. bank said it faced a $1.1 billion writedown for October alone. Investors also were rattled by speculation that Barclays PLC was about to announce a $10 billion writedown, though the U.K. bank denied the rumors.

"The extent of the situation is unknown, and that uncertainty doesn't give investors any reasons to believe that a bottom might be in place," said Todd Salamone, director of trading and vice president of research at Schaeffer's Investment Research. "We just got more of the same this week rattling investors, and the question for investors becomes what's the next catalyst to drive stocks higher."

Further worries about the continuing credit market slump kept investors on edge a day after Federal Reserve Chairman Ben Bernanke said he expects the economy to "slow noticeably" this quarter.

He also said the dollar's weakness "may have some effect on import prices" - which was confirmed Friday in new government data. The Commerce Department reported U.S. import prices soared last month at their fastest pace since early last year.

Meanwhile, the University of Michigan's preliminary November consumer sentiment index tumbled for its weakest performance since October 2005.

The Dow Jones industrials fell 223.55, or 1.69 percent, to 13,042.74. The blue chip index is down 1,155.35 points, or 8.14 percent, since its August high.

The Standard & Poor's 500 index was off 21.07, or 1.43 percent, at 1,453.70, while the Nasdaq composite index tumbled 68.06, or 2.52 percent, to 2,627.94.

For the week, the Dow rose dropped 4.06 percent and the S&P 500 tumbled 3.71 percent. The technology-focused Nasdaq, which often trades with more volatility, plunged 6.49 percent.

Bond prices rose, with the yield on the benchmark 10-year Treasury note falling to 4.22 percent from 4.27 percent late Thursday. Yields and prices move in opposite directions. The bond market will be closed Monday for the Veterans Day holiday observance; the stock market will be open. Meanwhile, both gold and the dollar were lower.

Financial stocks were among the hardest hit, though the banks that warned about the fourth quarter finished mostly flat amid relief that that might be all the current period's trouble. BofA rose 49 cents to $43.99, JPMorgan fell 32 cents to $42.29, and Wachovia was up 31 cents at $40.61.

Investors were also uneasy about tech stocks after Qualcomm Inc., the nation's second-biggest maker of chips that run mobile phones, predicted that heightened competition and legal troubles will cause 2008 results to fall 4 percent to 7 percent below Wall Street projections.

Qualcomm fell $1.66, or 4.2 percent, to $38.10.

Cisco Systems Inc. was another drag on the technology sector. It fell $1.05, or 3.5 percent, to $28.58 after the company warned of a dramatic decline in domestic business orders.

Merck & Co. said it will pay $4.85 billion to settle thousands of lawsuits over its painkiller Vioxx - a move considered to be the biggest drug settlement ever. The offer was finalized early Friday as Merck and the plaintiffs met with three of the four judges overseeing the claims. Merck rose $1.13, or 2.1 percent, to $55.90.

Walt Disney & Co. shares fell 89 cents, or 2.7 percent, to $32.74 after the entertainment company said late Thursday fiscal fourth-quarter profit rose 12 percent, driven by sports network ESPN and turnout at its U.S. theme parks. However, executives remain concerned about a Hollywood writers strike that began this week.

Declining shares led advancers by a better than 2 to 1 ratio on the New York Stock Exchange, where volume came to 1.62 billion shares.

[lastdance4]

By CNBC.com | 09 Nov 2007 | 01:47 PM ET

Citigroup''s Charles Prince Will Get $40 Million

Citigroup, the largest bank in the United States, said on Thursday that its former Chairman and Chief Executive, Charles Prince, will take home roughly $40 million as he retires from the company.

Citi shares have fallen for eight straight sessions, in a slump that has chopped $48.5 billion off the bank''s market capitalization.

The $40 million is in addition to about $53 million of shares Prince already owns,
Prince is receiving considerably less than the $161.5 million that Merrill Lynch''s O''Neal received

Criminal Corporate (Nazi) America
Can Commit any Crime they want to.....

Lastdance

[lastdance4]

This home loan Mortgage Crisis was Premeditated

This is Nothing More - than a Repeat of the : The Savings and Loan Scam
Under the : Reagan-Bush Administration
Where the Bush family made Billions of Dollars from a :
$100K - No Payback Loan

After the Savings and Loan Bankruptcies - the American Taxpayer
picked up the losses. The Bush Family - Raked in that money ! ! !
All from a - $100K - No Payback Loan ! ! !

This home loan Mortgage Crisis was Premeditated - Planned and Carried out.
There is something in the Works again - to Benefit - The Bush family and Friends
The Savings and Loan Scam - is Evidenced to this ! !

Research :
The Bush family and the S&L Scandal
copy and paste (Google)

Brought to you by :
The Republican (Nazi) Party -

Criminal Corporate (Nazi) America - Can Commit any Crime they want to....

Lastdance

[logicanada]

mediapreacher. . .seems at least one country is thinking straight. This should have happened worldwide when oil hit $50.00

[prairiefox1]

IT THE MARKET FALLS ENOUGH AND REMAINS THEN THE OUTRAGEOUS PRICES FOR FOOD AND FUEL WILL HAVE TO COME DOWN ALSO! AT ANY RATE WE MUST STOP THIS RUNAWAY INFLATION OR GET A WHEEL BARROW TO CARRY ENOUGH MONEY TO BUY A LOAF OF BREAD!

[hypnotoad72]

A couple years ago, some corporate execs said in public that the dollar would go down. Why did they do nothing to help prop it back up?

[trueprophet]

RON PAUL IS THE TAXPAYER''S BEST FRIEND
If he is elected President, Ron Paul will work to abolish the Federal Reserve System as well as the IRS, returning our country to the Gold Standard. He believes, as I do, that our current Income Tax System is unconstitutional, because it is a direct tax that is not equally apportioned as The Constitution requires. Whenever taxes are raised by the federal government, it should be done as The Constitution does require--in an indirect way, which is equally apportioned. This system would benefit all of us, creating more individual wealth, and allowing us to make more decisions for ourselves about our lives. As President, Ron Paul will also work to abolish the Federal Reserve, a group of private banks, run by unelected officials, which loans our government unbacked money which they are allowed to essentially print out of thin air, making each dollar in your pocket worth less all the time, and increasing our national debt to these banks. Worse still. Most of our debt is owned by China (25%) and Saudi Arabia who finance our runaway military spending overseas. This is a threat to our nation. We need to bring our troops home from overseas, and use the trillions we would save thereby to reduce our debt, and to re-invigorate our currency. We can use this money to ensure that Social Security and other essential programs will still be solvent in the future. Vote for Ron Paul. He''s published three books on the topic of sound economics. ronpaullibrary.org

[trueprophet]

RON PAUL TAKES ON FEDERAL RESERVE CHAIRMAN
Federal Reserve Chairman Ben Bernanke appeared before the Congressional Joint Economic Committee Chairman, Congressman Ron Paul on November 8th, and had to face some tough criticism concerning the fact that the Fed has been increasing the money supply while at the same time refusing to raise the Prime Interest Rate in order to curb deflation. Paul accused the Federal Reserve of "robbery," telling Bernanke, "There''s a dollar crisis out there and people''s money is being stolen," Paul said. "People who have saved, they''re being robbed. I mean, if you have a devaluation of the dollar at 10 percent, people have been robbed of 10 percent." Federal Reserve Chairman Ben Bernanke attempted to dispel that notion by explaining, "If somebody has their wealth in dollars and they''re going to buy consumer goods in dollars, then the only effect it has on their buying power is that it makes imported goods more expensive." Paul disagreed, reminding Bernanke, "Yeah, but not if you''re elderly and you have your wealth in CDs. Their cost of living is going-up no matter what your CPI says," adding finally, "Their cost of living is going up, and they''re hurting. And that''s why the people of this country are very upset."

[mediapreachr]

Look up "traders and India" on Google and you''ll see the gov there has suspended oil trading because the economy was affected.We''re being ripped off big time in the US.

[gkc99]

The so-called "credit crisis" is just another tool, like many before it, that the smart rich people use to separate dumb people from their money. Kind of like the endless booms and busts before it, dot.com, gold, Florida real estate, you name it.

The rich people in the know start a "buzz" going about good opportunities. The buzz filters down to the masses. The stupid people sink their money into these get-rich schemes. Then when the bubble bursts, the truly rich such up all those assets. Somebody ended up with all the money sunk into tech stocks during the dot.com boom. Somebody ended up with the money sunk into Everglades real estate.

When there are 3 or 4 shows on TV telling the peasantry how they can get rich "flipping" houses, you know the blood will soon be flowing!

[perceptions1]

There are more things going on than are apparent.
In contemplating the future, there are three absolute basics going forward -
1. Population/Aging.
2. Population/Climate
3. Population/Peak Oil.
Demographic levels are now being re-shaped Globally, as nearly two Billion Baby Boomers commence a 20 year transition from being big spenders, to big Retirement savers, to thrifty Retirees, before leaving us forever, in increasing numbers.
The costs of Peak Oil and an aging population are also becoming evident, as inflation starts to rise and real estate values start to fall, in the US & elsewhere.
This will completely change the dynamics of the world economy, as the generations following behind the Baby Boomers, are also substantially less in numbers and wealth.
Oil has gone from $10 to $98 a barrel, in just a few short years, how high will it go?
I recommend that we do not take information at face value, do your own research, but do it without pre-conceived ideas, take off the blinkers, see where it leads you and come to your own conclusions.
That said, all information needs to be read in context with the providers self interest, a great deal of information is tainted by the "smoke & mirrors" effect.
We are now, at the top of a once in history Population Growth Mega Cycle and some have caught a glimpse of the downside.
Unfortunately, when the herd turns, Scary will not be the right word.
Good luck and watch the debt!

[hypnotoad72]

MyIDonCBS - thanks much for your input. The moment I read "non-profit (organizations)" as one of the causes for 9/11, I knew something was off kilter.

As for Ann, has anyone figured out why she spent some quality time at a gay bar? ( http://www.huffingtonpost.com/rick-jacobs/ann-coulter-on-the-gay-_b_70156.html is the full URL ) I''m still trying to figure out just why she bothered to go there...

[downtowner97]

Good Morning. The national debt today is $9,114,054,895,920.53 The population of the United States is 303,496,049. Each citizen''s share of the debt is $30,030.23.

[walt1944-2009]

The economic policies of the neocons (Regan, Bush I, Bush II, and even Clinton) are working perfectly. In the USSA, the rich are getting richer, the poor are getting poorer, the middle class is almost gone as are jobs, and economic prosperity has been brought to India, Europe, and China (which still calls itself "The People''s Republic of China" for all you "Commie hunters" out there!). In the USSA, no one knows how to fix things anymore, and won''t even cut their lawns or build houses anymore because that''s too much like WORK, leaving it to the illegal aliens to do.

When the USSA goes bankrupt and the big "D" hits, the masses will be looking for another "saviour" like FDR to bring back prosperity. The only one''s they will have are Clinton, Bush, Clinton, Bush!

GOD HELP US!!!!

SIG HEIL, BUSH!!!

[olddummy46]

CBS needs new headline writers. PLUMMETS is hardly what happened. But that is not my main issue. The cure for the hyperinflation and the immense devaluation of the dollar is to take it out of the hides of the crooks who brought it to us -- BUSH and his cronies. 1) NO mortgage bail out. 2) IMMEDIATELY get out of IRAQ. 3) Put people at the top in JAIL. I''m mad as hell, and I''m not going to take it any more! Open up your windows and shout it out. 1) The ONLY break is that the so called forgiveness of debt income, in the form of foreclosure deficiencies, should NOT be taxed. The blame is on the lenders, not on the borrowers. The borrowers will have enough trouble with losing the homes the lug-nut lenders got them into without being lumbered with an unpayable tax bill. 2) IRAQ will cost us for decades to come, and, like Vietnam, FOR WHAT? As the wise man said, follow the money, then jail the crooks.

[rstein6]

VOODOO - its the best you can do?
Im no economics analyst but because Benard Bernanke-chair of the FED-UP just lowered the Prime Rib Rate from 8.25 - 7.75
(.50%) to "stimulate us", - could this be the problem
why the banks and wall street are worried
Because of the cost fuel prices - eg. gas which is over
$3.00/gal and a price of a crude barrel is near $100.00 thanks to the elite of BUSHCO/Haliburton consortium that this in itself will fuel inflation.
Now inflation causes the dollar to be devalued or "weaker" . So if joe schumck borrows $10,000 from Citbank AKA Citigroup say 1 year ago when the dollar
was stronger, which now is practically worth nothing
the Citicorpse group find themselves losing obviously
AH DUH, now Joe, the Schmuck is now paying that loan
of with "cheaper or worthless dollars", until Joe the schmuck defaults, and files chapter 7, or 13 Bankruptcy, Joe and Citigroup are all losers. ---
I could be wrong but burpy, my pet monkey told me so.
Also the Masses are ***** at best. They elitists who
put the Bushies into power don''t care - put alas, will they enjoy it when they leave office?
. As propesized, Annuit conceptus - a new world order
will arise and the mark of the beast "666" will solve the problem. Baby will they track you now like
you won''t believe. LOL.

[lochlan-2009]

If you voted republican, you have nothing to complain about.

Of course, you would have had to be a moron, so, you probably have no idea what''s going on and why anyway.

[myidoncbs]

hypnotoad72, That Dinesh, the former boy-toy of Ann Coulter, is a W-H-A-C-K-Y fellow! His writing is such childish, immature, lunacy! It''s a wonder he can even find a publisher for his trash. But the "conservatives" LOVE him for pushing their christofascist agenda, so he''s made a killing off their ignorance.

[hypnotoad72]

hungry1968 - is it a good practice to offshore jobs, which in turn means people with credit card bills cannot pay them back (or if they had good credit won''t be able to maintain it much longer), which for "globalization" can only be a misnomer as "globalization" talks of expansion, yet offshoring is merely migration? Especially when our economy runs on consumer spending?

Funny. Anyone who talks of "America''s comeuppance" doesn''t realize it''ll happen to them too at some point.

[greeneyes222]

Wall Street had no problem with obviously shady business practices by banks until the bill came due, despite the fact managers are supposedly financial experts. ARM''s weren''t exactly a secret. It makes you wonder what they''re teaching MBA''s these days.

[trillion1]

Wait till after the holidays when the credit card bills start rolling in for people who didn''t have enough cash for gifts.