Archive for the ‘NYSE’ Category

Obama, Socialism, Fear, Lack of Confidence: Tanking Stocks, Skyrocketing Debt, Recovery Doomed This Year

March 7, 2009
This has the feel of a full scale assault on capitalism….

Some investors and pundits blame Obama for the market’s dismal performance. He inherited a mess, but his rhetoric isn’t helping.
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Obama’s Radicalism Is Killing the Stock Market

NYT: After March 6 Economic News, “2009 is Probably a Lost Cause”

Tom Petruno, Market Beat
Los Angeles Times
March 7, 2009
The stock market is supposed to be a bet on the future.

The market’s verdict so far this year: There is no future.

The continuing meltdown in share prices, the worst since the Great Depression, now has become Exhibit A in the political battle between the Obama administration and its harshest critics.

Conservative pundits including Rush Limbaugh and CNBC-TV’s Larry Kudlow assert that the president is waging war against capitalism itself, with his tax-hike proposals, social programs and banker-bashing rhetoric. That has sent disillusioned investors fleeing, they contend.

Well, something has. After diving 38% last year, share prices are down 24% just since Jan. 1, as measured by the Standard & Poor’s index of 500 big-name issues.

Despite a slight uptick on Friday, stocks plummeted 7% this week alone.

An outside view of the New York Stock Exchange on Wall street. ...

The decline from the market’s peak in October 2007 now is 56.3% — the steepest drop since the plunge of 1938 to 1942, when no less than the future of democracy was at stake.

“I think everybody is afraid of Obama,” said Todd Leone, a veteran stock trader at Cowen & Co. in New York. “They’re afraid he’s a socialist.”

Yes, the S-word.

Others say the market is more upset with the administration’s failure to stabilize the ravaged banking system — a Herculean task that Wall Street had hoped would be the first major challenge the White House tackled.

“Every time Obama talks about something like healthcare, the market’s reaction is — ‘No, the banking crisis!’ ” said Jeffrey Schappe, investment chief at BB&T Asset Management in Raleigh, N.C.

Treasury Secretary Timothy F. Geithner still hasn’t provided specifics on his plan to get rotting loans off the balance sheets of major banks, a step seen as crucial to jump-starting new lending.

For his part, the president this week advised investors to look beyond what he called “day-to-day gyrations” in share prices.

He then ventured into territory where few other presidents have gone. Perhaps taking a cue from fellow Democrat Warren E. Buffett, Obama offered an opinion on whether stocks were bargains.

“What you’re now seeing is profit and earning ratios are starting to get to the point where buying stocks is a potentially good deal, if you’ve got a long-term perspective on it,” he said Tuesday.

He didn’t get the lingo right, assuming he meant to say “price-to-earnings ratios,” a measure of stock prices relative to earnings per share. That flub caused snickering among market pros.

Read the rest:
http://www.latimes.com/business/la-
fi-petruno7-2009mar07,0,869176.column

Related:
 Can Democracy Fail With Obama’s Socialist Help?

George W. Obama?

Related:
 Venezuela’s Chavez Urges Obama, U.S. Down Socialist Path

Obama’s Radicalism Is Killing the Stock Market

NYT: After March 6 Economic News, “2009 is Probably a Lost Cause”

Obama’s First Weeks: Economic Disaster, Socialist Agenda,

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Just Do It, Barack

March 7, 2009

At least President Obama knows the economy has problems. He’s spoken of a “financial crisis,” a “housing crisis,” a “credit crisis” – you name it.

So he earns points for recognizing the ills that plague us. Too bad he isn’t doing much about them.

Editorial
NY post

Sure, the administration’s housing program promises to keep more Americans in their homes – but it cannibalizes the troubled financial industry to do so.

It’s clear that TARP won’t solve the toxic-assets problem. Maybe Team Obama just prefers to let the financial sector remain one big Superfund site?

No strategy has emerged to bring financial regulations into the 21st century.

And the plan for recidivist beggars like AIG and General Motors is to throw more of your tax money at them.

All this as reports surface that Treasury Secretary Tim Geithner has yet to hire a single deputy – leaving Treasury virtually paralyzed during a major recession.

But instead of cleaning up the mess, Obama has wholly invested himself in a massive scheme to remake the Republic. In the name of “economic recovery,” he’s laboring to nationalize health care and education, and plowing megabillions into the flimsy promise of “green” energy.

Now, if the evaporation of trillions of dollars of wealth had been caused by a shortage of solar panels, or lack of a universal-health-care card, he might be right to do so.

So let’s be clear: His priorities are seriously misplaced – an observation that’s starting to get some traction.

Clearly that was the verdict yesterday from columnists Paul Krugman, Steve Forbes and Charles Krauthammer. When those three agree, it’s time to pay heed.

And pay attention Obama should.

One wake-up call came yesterday, as the government announced that more than 650,000 jobs disappeared in February – the first full month of the age of Obama.

And the Dow has made like an Acapulco cliff diver since Inauguration Day, plummeting more than 1,650 points – nearly 650 of them since the president unveiled the budget he says will solve everything.

This week, a share of Citigroup – worth $55 just 22 months ago – was a better fit for the McDonald’s Dollar Menu than the New York Stock Exchange.

The fact that no one’s buying up these deals means investors are weighing rock-bottom stock prices against the next few years’ economic prospects – and still aren’t convinced they can turn a profit.

Not exactly a stunning endorsement of Obama’s long-term plans for recovery.

Obama is famous for his discipline – and it’s time for him to show some.

Sure, the opportunity to turn America into Europe is appealing enough to put dollar signs in the eyes of any Democrat. But the president needs to ignore the distractions, and start making the fixes America’s economy really needs.

After all, Obama was one of the few Americans to get a new job in recent months. Those who hired him expect him to buckle down and do it.

Related:
Can Democracy Fail With Obama’s Socialist Help?

Dow’s Decline Is Fastest for a New President in Nearly a Century

March 6, 2009

The Dow Jones Industrial Average has fallen faster under President Obama than under any new president in at least 90 years, according to a review conducted by Bloomberg. 

Bloomberg reports that since Inauguration Day, the Dow has fallen 20 percent, leading at least one investor to dub this the “Obama bear market.” The Dow has also dropped 31 percent since Election Day. 

Despite a string of government bailout offers and Obama’s advice earlier this week that Americans should be buying stock while shares are low, the Dow has continued to freefall. 

Bloomberg reported that Obama is at risk of breaking a historical trend — in which the Dow soars an average of close to 10 percent in the first year after a Democrat wins the presidency. 

–Fox News

******

By Eric Martin

March 6 (Bloomberg) — President Barack Obama now has the distinction of presiding over his own bear market.

The Dow Jones Industrial Average has fallen 20 percent since Inauguration Day, the fastest drop under a newly elected president in at least 90 years, according to data compiled by Bloomberg. The gauge has lost 53 percent from its October 2007 record of 14,164.53, slipping 4.1 percent to 6,594.44 yesterday.

Read the rest:
http://www.bloomberg.com/apps/news?pid=206
01087&sid=a5o50mgg9hWA

Related:
NYT: After March 6 Economic News, “2009 is Probably a Lost Cause”

Malkin: “People that create American wealth are going on strike”

March 5, 2009

“People that create American wealth are going on strike,” conservative columnist Michelle Malkin told Neil Cavuto on the Fox News Channel on Thursday (4 PM Eastern hour).

Malkin says the “creators of American wealth” are hiring fewer people, planning only very limited future spending and drastically cutting investments.

She said that the “creators of wealth” now have a fear of those that are the middle-men like Congress.  The middle men are taxing the creators of wealth too much and spending tax dollars with little concern for future wealth, investment and debt.

The stock market was down again Thursday indicating that Ms. Malkin may be on to something….even as the White House gears up to spend even more on health care, the bank bailout and a foreclosure rescue plan…..

Related:
Obama Urged Investors to “Buy,” But Stocks Dive Again Thursday

NYT Urges Obama To “Bail Out” Third World Too

 Most Americans Now Say America Could Go Bankrupt

 Obama Can’t Revive Economy With Socialism

American Workers, Businesses Cut Back; Obama Launches Spending Spree

Presidency of Fear

Obama’s Brazen Deception: Why The Stock Market Won’t Recover Soon

 Senate Halts Obama Spending; At Least For The Week End

 Obama plan to prevent foreclosures won’t help many California homeowners

Michelle:
http://michellemalkin.com/2009/03/05/finall
y-a-show-of-cojones-senate-gop-forces-delay-o
n-omni-pork-bill/

Obama Urged Investors to “Buy,” But Stocks Dive Again Thursday

March 5, 2009

Trying to pump up the nation’s confidence, President Barack Obama said Tuesday that Wall Street has been hammered so hard that “buying stocks is a potentially good deal,” and he dispatched top aides to Capitol Hill to defend his plans for pulling the economy out of its deep recession. But the stock market slipped ever lower, as investors exhibited a total lack of confidence….

*****

NEW YORK (AP) — March 5: Investors fled Wall Street as fear grew about the stability of the nation’s largest banks and worries mounted about General Motors Corp. The major market indicators resumed their slide Thursday after a one-day rally, falling to levels not seen in more than a decade as investors contended with more disheartening economic data, new concerns about the stability of GM and ongoing uncertainty about the financial system.

Read the rest:
http://finance.yahoo.com/news/S
tocks-tumble-as-investors-apf-145
57845.html

Most Americans Now Say America Could Go Bankrupt

March 5, 2009

With the stock market in a nose dive and the U.S. government spending borrowed money like a drunken sailor, more than 60% of Americans now believe the U.S. could literally go bankrupt.

And as Americans watch news reports on how all this federal money (ie your money and my money) is being spent by the likes of Barney Frank, some are starting to wonder if all this spending will do any good, if it is fair and honest, and if it will prevent disaster (or as Barack Obama has sermonized: “catastrophe”).

Even if the “stimulus” and other Obama spending measures slow the economic downward slide, it is getting more doubtful that the Obama plan will restore investment, prosperity and economic growth in America — as investors seem to be saying in the stock market.

And is it all fair?  Should luxury car salesman Chadi Moussa get a new mortgage with your money and my money?  Should Americans and American companies be allowed to fail?

In the every-player-gets-a-trophy never-never land of liberal American, apparently nobody will be allowed to fail.  So the net reult may be that we all fail….

 

Chadi Moussa bought his home in Dublin, Calif, for $2.24 million in 2005. Its value and his income have since fallen by half. Now he wants a government bailout.  Heidi Schumann for The New York Times

*******

The stock market has plunged to its lowest point in decades, unemployment is up, and home foreclosures are sweeping the country. Still, Americans think it can get even worse – a lot worse. Fully 61 percent of Americans think it is possible the United States government could literally go bankrupt. That’s according to a new Fox News poll released Thursday.

By Chris Anderson

And what about the billions of dollars the government has spent since last fall to get the economy back on track? Many Americans think its simply not working: 44 percent say “things would be the same as they are today or even better” without the spending, while 38 percent think “things could have been a lot worse,” without the spending. Another 14 percent think it is too soon to tell.

Some 60 percent of Americans now describe themselves as confident “about the future security of your job,” down from 64 percent in September 2008 and 82 percent in October 2007.

Lower earning workers are the least confident in their job security. Nearly half (45 percent) of households with annual incomes under $50,000 are confident in their job security, compared to 70 percent of higher earning households.

Opinion Dynamics Corp. conducted the national telephone poll of 900 registered voters for FOX News from March 3 – March 4, 2009. The poll has a 3-point error margin.

Read the rest:
http://www.foxnews.com/story/0,2
933,505184,00.html

Related:
http://michellemalkin.com/2009/03/05/boo-freak
ing-hoo-million-dollar-home-owner-whines-about
-bailout-limits/

http://www.nytimes.com/2009/03/05/
us/05mortgage.html?_r=1&em

Stimulus Fails To Thrill

February 12, 2009

The stock market fell 20 points in its first half-hour on Thursday, an apparently negative reaction to the Obama stimulus bill and Tim Geithner’s bank bailout plan.

The Dow Jones Industrial Average fell in early trading, reflecting overnight internatioanl investor gloom.

Led by banks, the Dow was down across the board as investors worried the stimulus plan wouldn’t be enough to help the economy.

The first rise in retail sales in seven months had buoyed futures but traders shrugged it off as regular trading got underway.

The stimulus bill looks like a little bit of a wet blanket,” said Randy Frederick, director of trading and derivatives at Charles Schwab. “There is some concern that maybe this thing won’t work as well as expected.”

At the same time, Barack Obama, with the assistance of the liberal media, likened himself to Abraham Lincoln.

There was general disappointment in the stimulus and not joy across America.

Many of the stimulus provisions will take years to kick in and the economy, in the meantime, looks like it will continue to be flat or on a downward slope.

The public has low expectations for the package, with a large number of people feeling the package won’t have much effect on them.

After the troubles of the last few weeks it is not at all certain that the Obama hope remains alive — maybe it is on life support.

Pan Pylas of the Associate Press wrote today: “The raft of grim corporate news in Europe comes as the markets have largely given the thumbs-down to the passing of a $789 billion stimulus bill in Congress and U.S. Treasury Secretary Tim Geithner’s bank rescue plan, which could cost up to $2 trillion. On the Geithner plan, investors worried about the lack of detail, specifically the absence of any indications about how the banks’ toxic assets would be bought.”

Sudeep Reddy wrote in today’s Wall Street Journal, “The latest version of the economic-stimulus package is expected to provide less near-term support for the economy and make it less likely that the economy will pull itself out of recession before late this year.”

Andrew Taylor of the Associated Press wrote: “The $500-per-worker credit for lower- and middle-income taxpayers that Obama outlined during his presidential campaign was scaled back to $400 during bargaining by the Democratic-controlled Congress and White House. Couples would receive $800 instead of $1,000. Over two years, that move would pump about $25 billion less into the economy than had been previously planned.”

“Officials estimated it would mean about $13 a week more in people’s paychecks when withholding tables are adjusted in late spring. Critics say that’s unlikely to do much to boost consumption.”

Expect a full blown media swoon to tell us how great the stimulus really is — even if we don’t feel that way…

Related:
http://www.cnbc.com/id/29158596

Will the stimulus bill boost public confidence?

 Obama: No Vision as Foundation to Spending; Except Maybe Socialism

Obama’s “My way or the highway” vs “better ideas”

World stocks sag on concerns about Obama plans

Dow Falls 400; Geithner Recovery Plan Worries Investors

http://bonniekaryn.wordpress.com/2009/02/12/fe
bruary-11-2009-the-senate-and-congress-agree-o
n-a-stimulus-bill/

http://michellemalkin.com/2009/02/12/here-it
-is-all-1434-pages-of-the-porkulus-conference-report/

Sudeep Reddy in today’s Wall Street Journal:

http://online.wsj.com/article/SB1234398173
72075155.html?mod=article-outset-box

Andrew Taylor, AP:
http://apnews.myway.com/article/
20090212/D96A0AGO0.html

Related:
http://conservativemeanderings.wor
dpress.com/2009/02/12/a-trillion-
dollar-failure/

A bank employee counts US dollar bank notes. The euro fell sharply ...

Dow Falls 400; Geithner Recovery Plan Worries Investors

February 10, 2009

Treasury Secretary Timothy F. Geithner unveiled the Obama government’s  latest tactics to address the troubled banking system today and the Dow went down 400 points.

My Geithner, who failed to pay his own taxes before he was Secretary of the Treasury, came forward with a plan with few details — those goodies he said he’s reveal real soon.

He also went out of his way several times to say he was trying things he’d never tried before and that there isn’t certainty that his plan will work…..

Sure is a lot of money, like $2 trillion, borrowed, for incomplete details and little knowldge of success…..

Related:
No Details: Can’t We Do Better than This?
Top Banking Committee Senator Attacks Obama, Geithner Bank Bailout

Dems Alraedy Have Excuses for Economic Failure

http://michellemalkin.com/2009/02/10/ta
x-cheat-wonder-boy-geithner-is-a-laughingstock/

******************************

For jittery investors, the government’s latest plan to stabilize the financial and credit markets with up to $2 trillion in public and private funds provided cold comfort.

Stock prices tumbled on Tuesday after Treasury Secretary Timothy F. Geithner unveiled the government’s latest tactics to address the troubled banking system. Primary among those was an expanded efforts ease consumer and commercial credit and a new program to buy up hard-to-sell assets that have bogged down banks.

By Jack Healy
The New York Times

At 2:15 p.m., the Dow Jones industrial average was down more than 345 points, or 4.2 percent, dropping below 8,000, and the broader Standard & Poor’s 500-stock index was down about 4.4 percent. It was shaping up to be the worst day for stocks since a broad sell-off on Inauguration Day.

Despite the size and scope of the Obama administration’s plans, investors said Mr. Geithner’s proposal raised more questions than it answered. The way out of the financial crisis, analysts said, looked as murky as ever.

“We’re not impressed, and I don’t think the market’s impressed either,” said Ryan Larson, head equity trader at Voyageur Asset Management. “It’s clear the administration is still trying to work on something concrete. I think the market sensed that, too.”

A key measure of market volatility rose, as did prices of safe-haven government debt. The yield on the benchmark 10-year Treasury note, which rose above 3 percent on Monday, fell back to 2.83 percent.

Every sector of the market was trading lower, with the Standard & Poor’s financials index falling by more than 8 percent, reflecting uncertainty about the banking system and how the government’s latest plans would affect major financial companies. Shares of Bank of America slid more than 5 percent, and Goldman Sachs and Morgan Stanley also fell.

Read the rest:
http://www.nytimes.com/2009/02/11/busine
ss/11markets.html?_r=1&hp

By Tim Paradis, Associated Press

 Investors are frustrated with the government’s latest bank bailout plan — and showing it by unloading stocks.

The major stock indexes fell as much as 5 percent Tuesday, including the Dow Jones industrial average, which tumbled 400 points. Financial stocks led the market lower, reflecting Wall Street‘s growing concerns about the government’s ability to restore the health of the banking industry.

Traders and investors said the lack of specifics from Treasury Secretary Timothy Geithner on how the government would direct more than $1 trillion in public and private support was troubling.

The plan is aimed at restoring proper functioning to credit markets, which seized up over worries about bad debt after the September bankruptcy of Lehman Brothers Holdings Inc. The latest plan calls for a government-private sector partnership to help remove banks’ soured assets from their books.

Read the rest:
http://news.yahoo.com/s/ap/2009021
0/ap_on_bi_st_ma_re/wall_street

Geithner Announces Bank Moves; Wall Street Sells Off

February 10, 2009

Wall Street considers this a sell out.  So they are selling off.

Treasury Secretary Timothy Geithner says the new administration will wage an aggressive two-front battle against the worst financial crisis in seven decades, while the Federal Reserve expands a key lending program to up to $1 trillion.

“Instead of catalyzing recovery, the financial system is working against recovery, and that’s the dangerous dynamic we need to change,” The Treasury Secretary said today.

The TARP will be renamed but all the details are sketchy.

But sketchy is good enough for a very wary Wall Street…..

Stocks are down as we approach 1 PM.

“Our challenge is much greater today because the American people have lost faith in the leaders of our financial institutions, and are skeptical that their government has — to this point — used taxpayers’ money in ways that will benefit them,” Geithner said.

From CNBC:

US stocks fell sharply Tuesday in a broad-based decline as the government announced details of its latest bailout plan.

The Dow Jones Industrial Average was down about 70 points, then lost another 100 in a matter of minutes — before even any official government announcement.

Stocks continued to slide as Treasury Secretary Tim Geither revealed details of the bank-bailout plan, after a one-day delay. CNBC will interview Geithner after his speech, at noon. Then he’s on to Capitol Hill, where he will testify before a House panel.

The “Financial Stability Plan,” as it’s now called, consists of four main components:

1) It will set up a public-private fund to mop up $500 billion of spoiled bank assets.

2) It will set up a consumer-lending facility that will “leverage up to $1 trillion.”

3) It will devote $50 billion to stem home foreclosures.

4) It will provide new funding to banks after a stress test to determine if the bank is healthy.

Some market watchers remain skeptical over the benefits of the plan and legendary investor Jim Rogers told CNBC it could even make things worse. The bailout will plunge the US further into debt and it is designed by the same people who failed to forecast the crisis in the first place, Rogers said.

CNBC:
http://www.cnbc.com/id/29119665

********************************

Geithnner Speech Highlights

WASHINGTON (Reuters) – The following are excerpts from a speech U.S. Treasury Secretary Timothy Geithner will deliver on financial stability at 11 a.m. EST.

“As President Obama said in his inaugural address, our economic strength is derived from ‘the doers, the makers of things.’

“The innovators who create and expand enterprises.

“The workers who provide life to companies and, with their earnings, support families and invest in their future… This is what drives economic growth.

“The financial system is central to this process, transforming the earnings and savings of American workers into the loans that finance a first home, a new car or a college education, the credit necessary to build a company around a new idea.

“Without credit, economies cannot grow, and right now, critical parts of our financial system are damaged.

…..

“Instead of catalyzing recovery, the financial system is working against recovery, and that’s the dangerous dynamic we need to change.

“It is essential for every American to understand that the battle for economic recovery must be fought on two fronts. We have to both jump-start job creation and private investment, and we must get credit flowing again to businesses and families.

Raed the rest:
http://www.reuters.com/article/ou
siv/idUSTRE5194C920090210?sp=true

Related:

Federal Government Takes Over American Life

http://michellemalkin.com/2009/02/10/b
ohica-here-comes-2-trillion-tarp-ii/

Timothy Geithner
Photo: AP

Worst U.S. Stocks Slide in Inauguration Day History

January 21, 2009

U.S. stocks sank, sending the Dow Jones Industrial Average to its worst Inauguration Day decline, as speculation banks must raise more capital sent financial shares to an almost 14-year low.

State Street Corp., the largest money manager for institutions, tumbled 59 percent after unrealized bond losses almost doubled. Wells Fargo & Co. and Bank of America Corp. slumped more than 23 percent on an analyst’s prediction that they’ll need to take steps to shore up their balance sheets. The Dow’s 4 percent slide was the most on an Inauguration Day in the measure’s 112-year history, according to data compiled by Bloomberg and the Stock Trader’s Almanac.

“All the banks are going to have to recapitalize,” said Greg Woodard, portfolio strategist at Manning & Napier Advisors Inc., which manages $16 billion in Fairport, New York. “That’s not done. That’s in front of them, and we don’t want to try to get in front of that trade.”

The S&P 500 plunged 5.3 percent to 805.22. The S&P 500 Financials Index fell 17 percent to below its lowest closing level since March 1995 as concern European banks need more capital also weighed on the group. The Dow average slid 332.13 points to 7,949.09. Both the Dow and S&P 500 retreated to two- month lows.

The S&P 500 is off to its worst start to a year, shattering the biggest rally since World War II, as analysts cut earnings estimates by a record 83 percentage points and companies signal worse to come.

Bloomberg

A paedestrian passes before a share prices board which has news ... 
A paedestrian passes before a share prices board which has news pictures of new US President Barack Obama in Tokyo on January 21. Asian stocks fell Wednesday after a plunge on Wall Street, where financial fears eclipsed hope that US President Barack Obama will move quickly to resuscitate the stricken economy.(AFP/Yoshikazu Tsuno)

The S&P 500 is down 11 percent in the first 12 trading days of 2009, exceeding last year’s 9.2 percent drop, according to data compiled by Bloomberg going back to 1928. The decline helped erase more than two-thirds of a 24 percent rally since Nov. 20 as optimism that government spending would revive the economy evaporated.

‘Effectively Insolvent’

U.S. financial losses from the credit crisis may reach $3.6 trillion, according to New York University Professor Nouriel Roubini, who predicted last year’s economic and stock-market meltdowns.

“If that’s true, it means the U.S. banking system is effectively insolvent because it starts with a capital of $1.4 trillion,” Roubini said at a conference in Dubai today. “This is a systemic banking crisis.”

Europe’s Dow Jones Stoxx 600 Index retreated 2.1 percent today, led by banks and technology companies. It fell almost 2 percent yesterday after Royal Bank of Scotland Group Plc forecast the biggest-ever loss by a U.K. company. The MSCI Asia Pacific Index retreated 2.1 percent today.

Obama Sworn In

Barack Obama became the 44th U.S. president today, inheriting the most severe economic crisis since Franklin D. Roosevelt was sworn in 76 years ago. The turmoil has dragged the world’s largest economies into recession, caused more than $1 trillion of losses at financial institutions and prompted a sell-off in global stock markets.

Treasuries fell for a second day on speculation Obama will sell record amounts of debt to battle the recession. The dollar strengthened for a second day against the euro.

State Street lost $21.46 to $14.89 for the biggest drop in the S&P 500 and the stock’s steepest tumble since at least 1984. Unrealized losses on fixed-income investments rose to $6.3 billion at Dec. 31 from $3.3 billion at Sept. 30, the company said. Unrealized losses on assets held in conduits increased to $3.6 billion from $2.2 billion.

Bank of New York Mellon Corp., the world’s largest custodian of financial assets, fell 17 percent to $19, its lowest closing price since 1997.

Financials Tumble

Financial companies posted the biggest drop among the S&P 500’s 10 main industry groups as all 81 shares fell.

Wells Fargo, the largest bank on the U.S. West Coast, slid 24 percent to $14.23. Friedman Billings Ramsey Group Inc. analyst Paul Miller lowered his earnings estimates and price target, in addition to predicting a dividend cut.

Bank of America, the biggest U.S. lender by assets, fell the most in the Dow average, sliding 29 percent to $5.10. FBR’s Miller estimated Bank of America needs at least $80 billion of additional capital.

Read the rest from Bloomberg:
http://www.bloomberg.com/apps/news?
pid=20601087&sid=aOYw.awwsNSg&r
efer=worldwide

The Bank of America building in Washington, The bank will receive ... 
The Bank of America building in Washington, The bank will receive 20 billion dollars in fresh capital to help shore it up after acquiring Merrill Lynch, the US Treasury Department announced(AFP/File/Karen Bleier)