Banks fall because of bad loans

greenspun.com : LUSENET : Grassroots Information Coordination Center (GICC) : One Thread

``The market is telling you there is a
potential problem with bad loans,'' said
Bill Rubin, who manages a $400 million
hedge fund of mostly financial stocks at
Keefe Managers Inc. ``Banks make loans to
all types of businesses and, when they see
their earnings and cash flow slow, they will
be less able to pay back their loans.''

Wells Fargo & Co. slid 3 43/64 to 38 25/64,
Bank of America dropped 4 27/64 to 47 33/64,
Fleet Boston Financial Corp. slid 1 201/256
to 36 39/256 and Bank One Corp. dropped 2 5/16
to 28 15/16.

J.P. Morgan slid 8 9/16 to 117 15/16,
American Express fell 4 to 51 1/2 and
Citigroup slipped 2 3/16 to 62 11/16.

UnionBanCal dropped 8 3/4 to 19 15/16.
The second-largest California-based
bank said second-quarter earnings from
operations will likely be 77 cents to 82
cents a share. Analysts had expected 88 cents.

Wachovia fell 5/8 to 56 7/16, extending
yesterday's 19 percent drop after the
third-largest Southeast bank warned second-
quarter earnings will be lower than expected.

Chase Manhattan Corp. sank 3 89/256 to 45
119/156. Deutsche Banc Alex. Brown analyst
George Bicher lowered his profit forecast
for the second-largest U.S. bank.

Bloomberg

-- spider (spider0@usa.net), June 17, 2000


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