Two Big Financials Getting Hammered
Yesterday, it was America's two largest automakers -- GM and Ford -- that saw their stocks get pummeled.
Today, it's two of America's biggest financial institutions -- Morgan Stanley and Goldman Sachs.
Goldman is trading down about 17 percent on the day, while Morgan Stanley is trading down 38 percent on worries for its financial survival.
This, despite Morgan Stanley's reassurance to investors this morning that the $9 billion investment from Japan's Mitsubishi UFJ Financial Group -- given the Japanese company's 20 percent take in Morgan Stanley -- is still on track.
The two big houses may be getting infected by the bad-credit contagion of their less-healthy brethren.
"Morgan Stanley shares have been under extraordinary pressure as of late, for no apparent fundamental reason, as we estimate liquidity, the balance sheet, and long-term earnings prospects are sound," said David Trone, an analyst with Fox-Pitt Kelton told the Associated Press.
Goldman is the alma mater of Treasury Secretary Hank Paulson and his mentee, Neel Kashkari, who has been put in charge of administering the $700 billion Wall Street bailout/rescue.
-- Frank Ahrens
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