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
By
Frank Ahrens
|
October 10, 2008; 3:30 PM ET
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Posted by: IV | October 10, 1908 3:36 PM | Report abuse
You got back over 400. I knew you could do it. It looked bad at 2, at 4 it looked twice as good.
Posted by: IV | October 10, 1908 3:52 PM | Report abuse
A cynic would say after Hank is done "rescuing" the market the only i-bank left standing would be his alma mater. Neat eh?
Posted by: Anonymous | October 10, 1908 4:08 PM | Report abuse
BANKRUPTING THE GOVERNMENT
There is no faster way to bankrupt the government than to buy stocks WITHOUT OWNERSHIP. We have a top guy in the financial market who is an IDIOT. Does he really understand what he is doing? Shortsellers can swallow those billions in seconds. It's tantamount to money transfer from government to shortsellers for free.
SACK HANK PAULSON!!! THIS GUY IS TERRIBLE!!
At least the Brits were buying stock and OWN THE COMPANY. This person is an IDIOT!!
Posted by: spiderman2 | October 10, 1908 8:05 PM | Report abuse
Next week preview.
The hammering is done. Now it's time to cover them with dirt and fill in the graves they thought they dug for us. If there's enough time, dig some more holes for the next group of them. It's looking like a bloodier mess. We didn't start it. We need to finish it and then move on. Bring your own hatchets! It's going to get cold.
Posted by: Anonymous | October 11, 1908 6:13 AM | Report abuse
Financial companies are shedding tens of thousands of jobs, yet applications to graduate business schools rose this year.
Smart.
Posted by: Anonymous | October 11, 1908 5:38 PM | Report abuse
A deeper ditch.
"There's got to be more in it for GM than just Chrysler," said Erich Merkle, an auto industry analyst with Crowe Horwath LLP, an accounting and consulting firm. "If you put two auto companies together, both that are losing money, both that are losing market share, you've just got an auto company that's losing market share faster and losing more money." AP
Hatchet time.
Posted by: Anonymous | October 12, 1908 1:35 AM | Report abuse
"If you put two banks together, both that are losing money, both that are losing market share, you've just got a bank company that's losing market share faster and losing more money."
Detroit, Wall Street it's all the same story with a few cosmetic changes. Gold man is looking a bit worse and oil dropped too. Maybe if food drops, the starvation problem won't be as bad. It's looking like the Burger Kings and Dairy Queens have failed all of us. Aw shucks. Back to Mom & Pop business again.
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Posted by: Night Mayor | October 13, 1908 1:50 AM | Report abuse
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The Post is climbing. You were sinking. Keep climbing. A lot of ground left to make up. Thank God For Friday.