Credit Crisis Continue to Hurt Stocks
Stocks are posting heavy losses on Friday, as the credit crisis continues to decimate a number of financial stocks.
Fannie Mae
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PowerRating) reported a third quarter loss of $1.4 billion, more than double Q2’s loss, and the company warned for 2008 (read more).
Wachovia
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PowerRating) announced that it expects to report losses of $1.1 billion in October, as the company is forced to write-down its portfolios (read more). Wachovia’s stock was downgraded by FBR, while Lenhman Brothers reiterated its “overweight” stance (read more).
Canada’s CIBC
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PowerRating) said it will take a $463 million pre-tax write-down in Q4 related to the credit markets (read more).
Capital One
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PowerRating) also raised charges it will be forced to take due to the deteriorating credit markets.
In the U.K., the Financial Times reported rumors were circulating that Barclays
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PowerRating) will write-down a further $20 billion, also related to the credit markets.
Merck
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PowerRating) agreed to pay about $4.85 billion to settle a significant portion of claims over injuries allegedly linked to its Vioxx painkiller (read more).
The U.S. dollar continued its slide, prompting Treasury Secretary Hank Paulson to make the claim that he supports a “strong dollar”, while urging China to make economic reforms.
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