Banks, Brokerages Getting Whacked; Morgan Stanley Dean Witter Denies Junk-Bond Rumors

In a bad day for almost the entire stock market, bank and brokerage stocks have been particularly lousy. And the rumor mill is churning.

Recently, the Philadelphia Stock Exchange/KBW Bank Index was off 4.4% and the American Stock Exchange Broker/Dealer Index was off 5.8%.

One of the chief culprits for the sector's performance has been Morgan Stanley Dean Witter(MWD Quote).

Morgan today effectively denied rumors that it has seen substantial losses on its junk bond desk. The firm, echoing comments made in this morning's Wall Street Journal, said the rumors of their losses have been greatly exaggerated. ...