Daily Depression: “Bank Stocks Sink On Renewed Worries”
From the San Francisco Business Times:
Investors’ growing nervousness about the depths of the banking crisis hit shares of major banks that were seen as weathering the financial storm better than most.
San Francisco-based Wells Fargo (NYSE:WFC) saw its shares hit a new 52-week low, closing at $13.69, down $2.07 or 13 percent.
U.S. Bank (NYSE:USB), with a large Bay Area branch network, also hit a new 52-week low, closing at $10.73, down $1.67 or 13.5 percent.
J.P. Morgan Chase (NYSE:JPM) closed at $21.65, down $3.04 or 12 percent.
Bank of America (NYSE:BAC) closed at $4.90, down $0.67 or 12 percent.
Citigroup (NYSE:C) closed at $3.06, down $0.43 or 12 percent.
The declines reflect growing concern on Wall Street that the economic downturn may worsen even further than previously expected. The nation’s financial system could be swamped by cascading bad debts from credit cards and auto loans to commmercial real estate mortgages as the recession deepens and unemployment rises.
Adding to the day’s worries was General Motors (NYSE: GM) and Chrysler going back with hat in hand to Washington, D.C., seeking billions more from the government. Also not helping matters was the worst showing for the Japanese economy in 35 years in the fourth quarter and concern that the U.S. federal stimulus package might not be enough to spur growth here at home.
Word from Moody’s Investors Service (NYSE: MCO) that some Central and Eastern European countries “have now entered a deep and long economic downturn” sparked concerns about the outlook for European banks with heavy exposure to countries such as Poland, Hungary and the Czech Republic.
At least the sun is supposed to come out tomorrow…
–Bank stock sink on renewed worries -SF Business Times