8-25-2008 Dow falls 225, another bank fails
NEW YORK ? Stocks sank in thin trading Monday as worries about the credit ratings of American International Group Inc. weighed on the financial sector.
The financial sector has struggled in part because of a spike in the number of homeowners who have fallen behind on their mortgage payments. A report Monday by a trade group for real estate agents showed that the number of unsold properties reached an all-time high in July.
Lehman Brothers Holdings Inc. fell 75 cents, or 5.2 percent, to $13.66 amid speculation about the future of its chief executive and the independence of the nation's fourth-largest investment bank. The stock surged Friday following reports that an investment fund controlled by the Korean government was considering some level of investment in the company.
Other financial stocks fell after federal regulators on Friday closed Columbian Bank and Trust Co. in Kansas, which had been hit by losses on soured real estate loans.
It marked the ninth failure this year of a federally insured bank.
NEW YORK ? Stocks sank in thin trading Monday as worries about the credit ratings of American International Group Inc. weighed on the financial sector.
The financial sector has struggled in part because of a spike in the number of homeowners who have fallen behind on their mortgage payments. A report Monday by a trade group for real estate agents showed that the number of unsold properties reached an all-time high in July.
Lehman Brothers Holdings Inc. fell 75 cents, or 5.2 percent, to $13.66 amid speculation about the future of its chief executive and the independence of the nation's fourth-largest investment bank. The stock surged Friday following reports that an investment fund controlled by the Korean government was considering some level of investment in the company.
Other financial stocks fell after federal regulators on Friday closed Columbian Bank and Trust Co. in Kansas, which had been hit by losses on soured real estate loans.
It marked the ninth failure this year of a federally insured bank.