Financial stocks began generally losing their grip on positive territory around mid-morning Friday as a glut of corrosive news caught up with the sector.
Poor housing data contributed to the reversal. The Census Bureau reported that November home sales slid 9% sequentially and 34.4% vs. last year, and that the new homes inventory rose to 9.3 months.
Meanwhile, bond insurers
(MBI - Get Report) and
(ABK), already prominent victims of the ongoing credit crisis, took more hits after
The Wall Street Journal reported that Warren Buffett is
According to the Journal, the new entity aims to allow local governments to borrow more cheaply, and is planned to start up in New York today.MBIA lately surrendered $3.31, or 14.9%, to $18.96; Ambac was off 13.3% at $25.27. Berkshire traded up 1.9% to $140,400. Elsewhere in the sector, beleaguered mortgage investor Luminent Mortgage Capital (LUM) saw heavy trading following yesterday's disclosure of a huge third-quarter loss -- $520.6 million, or $12.17 a share. A year earlier, the San Francisco-based company lost just 17 cents a share, and in the second quarter it earned 20 cents a share.