Washington Mutual (WM) has apparently put itself up for sale. An MSNBC article discusses the fear that is gripping the marketplace as investors worry another shoe could drop.
"People are scared to death," said Bill Stone, chief investment strategist for PNC Wealth Management. "Who would have imagined that AIG would have gotten into this position?"
He said the fear gripping the markets reflects investors' concerns that AIG wasn't able to find a lifeline in the private sector and that Wall Street is now fretting about what other institutions could falter. Over the past year, companies including Lehman and AIG have sought to reassure investors that they weren't in trouble, and now the market isn't sure who can and can't be trusted.
"No one's going to be believing anybody now because AIG said they were OK along with everybody else," Stone said.
The two independent Wall Street investment banks left standing - Goldman Sachs Group Inc. and Morgan Stanley - remain under scrutiny, as does Washington Mutual Inc., the country's largest thrift bank. Morgan Stanley revealed its quarterly earnings early late Tuesday, posting a better-than-expected 7 percent slide in fiscal third-quarter profit. It insisted that it is surviving the credit crisis that has ravaged many of its peers.
A Bloomberg story says some of the problems today have to do with bank lending seizing up.
"It's ugly," said Michael Mullaney, a Boston-based money manager for Fiduciary Trust Co., which oversees $10 billion in stocks and bonds. "It's about the worst I've seen it in 25 years. You have to have free-flowing credit to lubricate the system. That's not happening right now."
Marketwatch is reporting that the Wall Street Journal says Citigroup and Wells Fargo may be interested in buying WaMu.
One bright spot on the day was gold which scored its biggest 1-day increase ever. Gold prices climbed $70 to settle at $850.50 in the regular session. Gold prices also climbed another $20 in after-hours trading.
Stocks tumbled again today despite the 