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Fears Of New Banking Failures Send Us Shares Tumbling

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http://www.guardian.co.uk/business/2009/se...s-shares-tumble

Fears of new banking failures send US shares tumbling

Renewed fears of further banking failures sent US shares tumbling in early trading today, despite signs of a recovery in the country's economy.

By the time the London stock market closed, the Dow Jones industrial average had fallen about 180 points, a near 2% decline, as traders heard talk of another possible banking default.

The fall sent shares in London falling in the late afternoon with the FTSE 100 closing down 89 points at 4820.

"The chatter from hedge funds is that there is a bank default," Jon Najarian, a founder of web information site Optionmonster.com, told Reuters.

Shares in Citigroup fell for the second day running, losing another 7% in early trading after a 4% decline on Monday.

The bank is one of the largest recipients of US government aid, having received around $45bn (£28bn) in the wake of the economic crisis. The US government now holds a 34% stake in the bank.

Citigroup sold three credit card portfolios on Monday, representing $1.3bn (£800m) in managed assets, as part of a plan to dispose of unwanted businesses.

Among the other US banks, Bank of America lost nearly 4.5% while Goldman Sachs fell nearly 2% and Morgan Stanley more than 3%.

The renewed concerns about the state of the banking industry outweighed earlier news that US manufacturing expanded in August for the first time since January 2008.

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Can't they just wait until October when the nights have drawn in so that I can enjoy it without being tempted out by the light?

p-o-p

Not even for your yearly dress up in stockings, suspenders and high heels, slap on some make-up and pretend it is all just a Rocky Horror skit for Halloween?

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Not even for your yearly dress up in stockings, suspenders and high heels, slap on some make-up and pretend it is all just a Rocky Horror skit for Halloween?

I go to Sainsburys at least twice a month dressed like that.

p-o-p

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The FTSE's probably going to get flushed down the pan again, as America is looking like a drunk man trying to thread a needle. A bit shaky.

If more banks let go, it's going to be hell, MKII. Get ready.

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I believe never put all your eggs in one basket as such I have money invested in shares cash and gold silver etc

Since the stockmarket bottom I have watched my gold go down as the market bounced more to currency movements but then kind of followed the stockmarket up when the markets up and down when the markets down etc but today for the first time gold has gone up when the markets gone down like the 2007 2008 period

Is this small detail the markets saying round two time to retest the bottom?

I am concidering selling all my stock tomorrow and putting all my eggs in one basket selling stock with nice profits is easy but all in one asset class i dont know anyway lets see what people think

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According to Reuters, rather than a bank default, there's a risk of default with a pretty major US based hedge fund - Cerberus Capital.

Cerberus has stuck in my mind ever since it was talking about buying Northern Rock... and I thought the mythical overtones to its name rather inappropriate.

Perhaps we're talking about a more general problem than just a single institution...

Edited by A.steve

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According to Reuters, rather than a bank default, there's a risk of default with a pretty major US based hedge fund - Cerberus Capital.

Cerberus has stuck in my mind ever since it was talking about buying Northern Rock... and I thought the mythical overtones to its name rather inappropriate.

Perhaps we're talking about a more general problem than just a single institution...

Then, to follow on from above, is it possible that just one giant hedge fund, shorting and then being forced to cover its own positions, has been the main driver in the global market 'recovery' since the beginning of the year?

Stranger things have happened.

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coming up on Bloomberg, an interview with the CEO of Wells Fargo

coincidence?

Yes they'd be far too busy to speak to bloomberg only if the ship was going down.

Pick any day you're likely to have some CEO or other talking to them.

Perhaps it's a chicago bank,

Perhaps it's corus.

Edited by slurms mackenzie

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So we aren't having a banking recovery then?

Are the markets panicking Bloomberg is going t reveal that all the banks are in fact insolvent and the bailout money has been used as one big slush fund to give bankers big payouts?

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Meanwhile

http://acrossthecurve.com/?p=8376

And elsewhere on another site, he who shall not be named (but who used to post pictures of mushroom clouds) simply said

"In Europe"

These are all just rumours.

That is too enigmatic for me... and for the 'net.... as Roy Walker would say "Say what you see Slurms!".

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These are rumours put about hedge funds. One hopes if the rumours prove untrue action will be taken against them?

What with high frequency trading scam's, giant squids, and hedge funds spreading false rumours, it amazes me why anyone dabbles on the Stock Market.

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That is too enigmatic for me... and for the 'net.... as Roy Walker would say "Say what you see Slurms!".

I see nothing, and am predicting nothing regarding this.

I merely scooped up some opinions from different sources and dropped em into a relevent forum.

For what it's worth a few people over on ticker forum which served well last year, rate this 'across the curve' guy, enough for me to cross post.

Ah it all takes me back ......

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