17 September 2008
Wall Street opens down, rescue AIG does not reassure
Wall Street has opened a significant decline Wednesday, the rescue plan announced for the insurer AIG had apparently not long reassured investors on the systemic risk posed by the crisis in credit markets.In the first exchanges, the Dow Jones thirty core values lost 1.86% or 205.75 points to 10.853,27, the index expanded Standard & Poor's 500 abandons 2.21% (26.85 points) to 1.186,74 and the Nasdaq composite market, a strong technology component, stumbles of 2.03% (44.89 points) at 2.163,01.
Wall Street continues to make the yo-yo over the developments of the crisis in U.S. financial institutions. She Monday experienced its worst quarter since 2001 after the announcement of bankruptcy of the bank Lehman, then rebounded Tuesday in the hope of a rescue of AIG.
This was formalized in the form of a loan of 85 billion dollars over two years made by the Fed in exchange for approximately 80% of the capital of the insurer. The fear that shareholders very diluted by the plan made AIG relapse by 34%.
Most financial values are losing ground, even Morgan Stanley unscrews of 15% despite the announcement the previous evening of the above quarterly expectations.
The continuation of the flight of interbank rates, a sign that tensions persist on the credit market, is also feared a contagion of financial crisis to other parts of the economy. For the industry, General Electric abandoned more than 6%.
by erectusplus at 19:22:00 |
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