Financial stocks endured another volatile trading session Tuesday, one day removed from
Lehman, which filed for Chapter 11 bankruptcy Monday after the investment bank failed to find a "white knight" savior in another firm or the U.S. Treasury, fell another 11% to 18 cents before shares were halted after word that
would buy Lehman's U.S. capital-markets businesses.
The Wall Street Journal
reported that Barclays will pay nearly $2 billion for the business, although an official announcement isn't expected until Wednesday. The deal is to be put before a New York bankruptcy court judge for approval at 5 p.m. EDT. Lehman's creditors are to meet at 6 p.m. EDT.
was another of the biggest decliners, tumbling as much as 74% on conflicting reports over whether the
or the private sector would save the troubled insurer.
reported late in the day that the Fed is considering extending a loan package to AIG to save it from filing for bankruptcy. AIG ended down $1.01, or 21.2%, to $3.75.
lost ground after the investment bank posted a slide in third-quarter earnings. Goldman reported revenue that came up short of Wall Street's expectations. The stock ended $2.49, or 1.8%, lower at $133.01.
saw losses pared late in Tuesday's session on word the company would release its third-quarter results early. The preannouncement, released after Tuesday's closing bell, said that revenue rose 1% from a year ago to $8 billion while net earnings slipped to $1.42 billion, or $1.32 a share, from $1.47 billion, or $1.38 billion. Wall Street was expecting earnings of 78 cents a share on revenue of $6.32 billion, according to Thomson Reuters.
Morgan was due to post the quarterly results before the start of trading Wednesday. After hitting a new 52-week low of $23.21 earlier in the session, Morgan finished down 10.8% at $28.70. However, the stock was up 10.2% in after-hours trading.
On the winning side,
jumped $5.12, or 30%, to $22.18 two days after the surprise announcement that
Bank of America
would acquire the struggling investment bank. Still, Merrill is trading well below the $29-a-share offer from Bank of America.
Shares of Bank of America, meanwhile, rose $3, or 11.3%, to $29.55.
shares surged on speculation that
was getting ready to make a bid for the ailing lender, according to
, which cited Britain's
newspaper. However two other sources familiar with the matter told
that JPMorgan Chase was not in active talks with WaMu.
WaMu's stock surged as much as 35% on Tuesday, but retreated after the Federal Reserve said it plans to keep the federal funds rate unchanged. The stock finished up 32 cents, or 16%, at $2.32.