Rumors of writedowns for
(GS - Get Report)
coupled with continuing capital concerns about
put pressure on financial stocks Wednesday.
Goldman reports its quarterly results on Monday and most analysts expect earnings will be reduced, but writedowns on leverage loans could be larger than anticipated, market whispers say. Goldman declined to comment on the rumors. The stock slid $4.81, or 2.9%, to $162.40.
Financial Sector Index declined 194.54 to 6,693.68.
Lehman plummeted for the fourth trading day in a row, after
The Financial Times
reported that it was considering Korean financial institutions as a source of capital. The investment bank on Monday has announced plans to raise $6 billion to shore up its balance sheet. Shares of Lehman dropped 13.6% to $23.75.
Lehman's slide also hit
(MS - Get Report)
, whose shares tumbled $2.10 to $37.13. Morgan will be reporting its second quarter on Monday and investors are becoming anxious about what they'll hear.
Standard & Poor's
analyst Kevin Cole increased his loss estimate and lowered his price target on
(WM - Get Report)
, citing continuing concerns about losses in the bank's option adjustable-rate mortgage and home equity portfolios. The mortgage lender saw its shares fall 9.3% to $6.06 in afternoon trading, after having dipped intraday to $5.75, a new 52-week low.
Private equity firm
plunged 11.8% to $15.95 after shareholders were asked to allow the company to sell shares of common stock below net asset value. However, many shareholders were unable to vote on the issue due to Securities and Exchange Commission rules, so the company plans on holding a special meeting to again try to get approval.