Financial Stocks Drop to New Lows

Posted by Patrick O'Connor on 7/7/08 10:18 am

Several financial stocks plumbed new lows today, driving the S&P 500 Financials Index down to levels not seen since 2002.  Freddie Mac (FRE) and Fannie Mae (FNM) led the pack lower with declines of more than 20% after rumors circulated that the two largest providers of U.S. home loans could be forced to raise more capital. Read extensive coverage on Fannie Mae and Freddie Mac at The Wall Street Journal.

Moreover, the pullback in financial stocks appeared to coincide with an announcement from the Federal Reserve and the Securities and Exchange Commission, which said they will share information on market regulations, anti-money laundering, bank and brokerage activities, and more.

News that Lehman Brothers, the fourth biggest brokerage firm in the U.S., was excluded by Platts from trading benchmark-setting oil contracts due to “credit issues” didn’t help financials either.

To receive email updates from Navellier All Cap Blog, click here.

• 
• Email
• Print
• Comments (0)

No comments have been posted for this entry.

Post a Comment

You must register and log in in order to post comments.