Financial stocks were flattened Monday as the long-running credit crisis claimed two more Wall Street giants and a third company found itself walloped by traders worried about its capital cushion.
Leading the selloff was
, which filed for bankruptcy protection after the New York investment bank failed to find a buyer during a weekend of efforts to stabilize the firm. Following the filing, shares of
were shredded, dropping $3.46, or 95%, to 19 cents.
Another story stock was
, though its shares were on the rise on word that
Bank of America
will acquire the brokerage firm in a $50 billion deal. That sent
up 14% to $19.44.
While the transaction means the days of independence are over for one of the nation's best-known financial brands, for BofA, the pact marks the second time in a matter of months that the Charlotte-based bank has come to the rescue of a struggling firm. Earlier this year, it took over mortgage company Countrywide Financial.
Shares of BofA were sinking 17.7%.
Then there was
, whose stock was losing 53% to $5.73 amid reports it's looking to sell some of its assets and raise new capital. In order to avoid a downgrade from the credit agencies, New York-based AIG may try to get a $40 billion infusion, according to a report in
The Wall Street Journal
Elsewhere in the group, reports emerged that Switzerland's
is facing another $5 billion in writedowns related to its investments in mortgage paper and other securities. Shares of UBS were dropping 17%.
, another troubled name whose stock has been in a tailspin, was losing 20%.
, a day ahead of its earnings report, was down 13%.
, which will release its quarterly numbers Wednesday, was falling 16%.
, members of the
Dow Jones Industrial Average
along with AIG and Bank of America, were both trading lower, as well.
Considering the damage in individual stocks, it came as no surprise that sector measures were falling hard. The Amex Securities Broker/Dealer index was sliding 6.8%, and the NYSE Financial Sector index was tumbling 6.2%. The KBW Bank index was off 4.2%.
This article was written by a staff member of TheStreet.com.