Not surprisingly, financial stocks were among the biggest losers of Monday's session after the House of Representatives voted down the $700 billion rescue bill aimed at increasing lending between banks.
The major averages fell hard after the proposal, championed by Treasury Secretary Henry Paulson and
Chairman Ben Bernanke, failed to garner sufficient votes. Investors quickly pulled money from the troubled financial sector due to fears that financial markets would seize.
Consequently, the financial components of the
Dow Jones Industrial Average
were among its worst performers as the index plummeted a whopping 6%.
Bank of America
fell more than 17% each, while
slid 6.9% and
was losing 5.9%.
was the worst financial performer of the day, by far. The North Carolina-based bank dropped more than 81% after Citigroup agreed to buy Wachovia's banking operations for $2.1 billion in a deal arranged by the Federal Deposit Insurance Corp.
( NCC) shares, meanwhile, lost 63.4% amid increasing speculation it would be the next financial firm to be seized by the FDIC.
Among other financial losers, troubled insurer
slumped 20.6% to $2.50,
dropped 15.2% to $20.99, and
was down 8.3% to $126.54.