The big question on everyone's mind this week was how could financial stocks and the funds that hold them have rallied in the face of such bad news?
NetBank failed on Sept. 28, with losses to some business account holders of as much as half a million dollars. It was the second bank failure for 2007, a rare event. No banks failed in 2005 or 2006. When federal regulators on Thursday announced the closing of a third bank, Miami Valley Bank of Lakeview, Ohio, it was downright shocking.
Reports this week by the industry leaders of $5.9 billion in credit and trading losses on loans and mortgage backed securities at Citigroup(C Quote), a $5 billion writedown at Merrill Lynch(MER Quote) and a 75% decline in quarterly profit at Washington Mutual(WM Quote) fly in the face of the subsequent rally. ...
Recent Comments
| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,441.12 | 1,109.18 | 2,206.91 | 35.96 |
Oil *
73.55
|
|
DOWN
10.88
|
UP
1.25
|
UP
5.86
|
DOWN
0.07
|
10 Yr
3.60%
SPDR Gold
111.59
|
|
-0.10%
|
+0.11%
|
+0.27%
|
-0.19%
|
Data delayed 20 minutes |
Connect with TheStreet