First Union Plunges on Rumor Sunbeam Loan Went Bad

Shares of First Union (FTU Quote) got crushed Tuesday afternoon on fears that a bad loan will soak the bank's bottom line.

Down the Mountain First Union's rumor-fed slide

The talk among traders and some hedge fund managers was that First Union is set to take a big charge for a loan to troubled consumer product maker Sunbeam (SOC Quote). Also hurting First Union shares was the bankruptcy filing of a First Union loan customer, bed-and-bath furnishings maker Pillowtex (PTX Quote). First Union was mostly flat before dropping at midafternoon on heavy volume. The stock ended up dropping $2.63, or 8.7%, to $27.44. ...