Monday, March 2, 2009

Market Update


Last Friday, Citigroup had turned the table on its preferred shareholders by forcing them to convert their holdings into far riskier ordinary shares, after suspending dividend payout.

Then this morning, HSBC Holdings, the premier bank in Hong Kong, suspended trading of its shares, before the announcement of its full-year results. HSBC Holdings PLC, Europe’s biggest bank, is abandoning U.S. subprime lending six years after a $15.5 billion expansion that led to record loan losses.

A.I.G. will get as much as $30 billion in new government capital and relaxed terms on its bailout after posting the worst loss by a U.S. corporation, $61.7 billion in the fourth-quarter.

Today, Oil has plunged more than $4 or 9.68% to $40.44 and last time I looked, Dow Jones was down to the 6800s level as it is becoming more evident that this bear global market is only just warming up.

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