Stock Market News: “Round Two” of Credit Market Crisis?
The 
is in turmoil this morning on news that could indicate that “round two” of the credit market crisis may be here. FX Street reports on where the banking sector is leading the stock market this morning:
WM was down slightly after announcing it would separate the CEO and chairman roles, in an attempt to placate shareholders after three quarters of huge losses. Lehman is off 3% after a Merrill downgrade and fresh cautious comments from Oppehheimer’s Whitney. All these stories are helping lead financial stocks lower and pushing some investors to the relative safety of U.S. Treasuries.
One of the biggest blows is coming from British bank Bradford & Bingley. Britain’s largest mortgage bank is reporting huge profit losses, and it has already announced that its CEO will be replaced. This is leading a fear in the banking sectors of stock markets from around the world. The speculation on the true health of other companies in the banking sector has begun anew.
Credit market crisis clearly not over
This is an indication that the credit market crisis is clearly not over, and that there are is the possibility of plenty of casualties yet to be seen. Indeed, with all of the “creative accounting” that goes on in many large Wall Street firms, I wouldn’t be surprised to see more of this in the near future.
Despite what those in charge may say about recovery, that is far from certain. And I’m not sure that the real solution is “confidence building” exercises, either. Maybe it’s time for these companies to work their problems out through the system.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions.
Tags: stock market, stock market news, investing blog, credit market crisis,
banking sector, investments, Bradford & Bingley
