Updated from 8:58 a.m. EDT
U.S. stocks sold off at the open Monday, as it became apparent that the credit crisis had spread beyond America into Europe and Asia.
Dow Jones Industrial Average
fell 209 points to 10,115, and the
gave back 26 points to 1073. The
dropped 53 points to 1895.
In a sign of a
global financial crunch
, leaders from France, Germany, Italy and the U.K. met Saturday and agreed to coordinate efforts to prevent failures in Europe's financial system.
A scramble ensued to help troubled institutions. Germany rescued lending company
Hypo Real Estate
, and France's
said it would take over Benelux bank
. Germany's chancellor, Angela Merkel, announced that Germany would guarantee all of its private bank deposits. On Monday, Denmark followed suit.
Back in the U.S.,
(WFC - Get Report)
said it intended to go ahead with its
purchase of Wachovia
(WB - Get Report)
. Wells Fargo said an appeals court vacated a ruling that extended an exclusivity agreement between
(C - Get Report)
On Monday, analysts at both Keefe Bruyette and Friedman Billings upgraded Wells Fargo to market perform from underperform.
The Wall Street Journal
said that Treasury Secretary Henry Paulson would appoint adviser
to supervise the $700 billion bailout program for the financial system. Paulson's proposal passed the House of Representatives and was signed by President Bush on Friday.
Bank of America
(BAC - Get Report)
announced it would modify about 400,000 mortgages to help borrowers who had taken out loans from
, which BofA acquired on July 1.
(HIG - Get Report)
said it garnered a $2.5 billion investment from
, is reducing its dividend and will register a third-quarter loss.