Yesterday Banking stocks in USA suffered some of their worst losses in a generation as investors' confidence in the U.S. financial system continued to erode despite the dramatic initiative by the federal government Sunday evening to bolster mortgage giants Fannie Mae and Freddie Mac.
The concerted effort to calm the public came as shares of Washington Mutual, the country's largest savings and loan, tumbled 35 percent, its biggest decline ever. Trading in National City, a large, Ohio-based bank, was briefly suspended during a panicked sell-off, its shares sinking to a 24-year low even as it issued an urgent statement that it was experiencing no unusual activity by depositors or creditors.
Concerns about the health of the country's financial firms spiked Friday after federal regulators seized IndyMac, which had relied on brokered deposit accounts -- high interest rate paying accounts, normally certificates of deposit, that are offered by a bank to brokers who represent large investors.
The concerted effort to calm the public came as shares of Washington Mutual, the country's largest savings and loan, tumbled 35 percent, its biggest decline ever. Trading in National City, a large, Ohio-based bank, was briefly suspended during a panicked sell-off, its shares sinking to a 24-year low even as it issued an urgent statement that it was experiencing no unusual activity by depositors or creditors.
Concerns about the health of the country's financial firms spiked Friday after federal regulators seized IndyMac, which had relied on brokered deposit accounts -- high interest rate paying accounts, normally certificates of deposit, that are offered by a bank to brokers who represent large investors.
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