Financial shares now diving
I am listening to C-Span where the House of Representatives is debating whether to pass the deeply flawed bailout bill that has been crafted on the heels of major disturbances in financial services. Unfortunately, this bill is not going to prevent further share price falls. The House is moving to final vote now.
As we speak, many shares are falling at double digit percentages. The firms to note are the following:
Ambac Financial (ABK, down 15%)
Bank of New York Mellon (BK, down 20%)
Capital One Financial (COF, down 10%)
CIT Group (CIT, down 18%)
Citizens Republic (CRBC, down 26%)
Fifth Third (FITB, down 35%)
KeyCorp (KEY, down 20%)
Legg Mason (LM, down 10%)
National City (NCC, down 50%)
Sallie Mae (SLM, down 23%)
State Street Corporation (STT, down 18%)
SunTrust (STI, down 11%)
Companies likely to face the next test of solvency are National City, Fifth Third and KeyCorp. All are very large regional financials that cannot be bailed out by the FDIC.