Another 368 points in the Dow. Heavy volume. The world awaits.
The US Securities & Exchange Commission has announced it intends to ban all short selling on Wall Street for a period, subject to requisite approval.
The US Treasury has a plan that will involve rescuing the entire financial system, not just those institutions which look like failing. A snap short-covering rally sent the Dow up 410 points. (Locked for subscribers until 10:00 AEST)
The Economist’s Intelligence Unit expects the financial crisis to produce a US recession and weaker global growth with corporate collapses increasing.
Fear gripped Wall Street last night as corporate bond markets crashed and investors rushed out of equities and into Treasuries and gold. The Dow was down 450 and gold up over US$80.
AIG may go the way of Fannie and Freddie. Fed leaves the cash rate unchanged. Strong results from remaining investment banks. Dow up 141.
Late in last night’s session, Wall Street turned its attention away from the biggest corporate failure in US history to contemplate whether that record might be smashed within the week.
The Dow fell 500 points to new lows as AIG nears bankruptcy. Oil fell over US$6 as commodities (but not gold) are again shattered.
Rather than acquire Lehman Brothers Bank of America is now buying Merrill Lynch for around US$44 billion seeing Lehman Brothers announce a move to chapter 11.
A consortium of global banks is preparing a rescue fund for the market – but not for Lehman.