Citigroup Drags Stocks Down

They're near deal to settle allegations on mortgage-bond deals

(NEWSER) - A number of top Wall Street banks are on the verge of settling fraud allegations with the SEC for the mortgage-bond shenanigans that led to the financial crisis, sources tell the Wall Street Journal . The cases are being handled individually, since each bank faces substantially different charges, with the first settlement expected as soon as next week. They represent regulators’ biggest attempt so far to hold Wall Street accountable for the crisis. More»

But headhunting 'selective,' notes banker

(NEWSER) - After cutting thousands of jobs over the past two years, American banks are rushing to fill them again as business picks up, Reuters reports. “Back in March and April, no one really knew if the investment banking business was going to exist again," said a search firm exec. "The world has changed dramatically in the last four to five months and now banks are hiring." More»

Overhauls drive firms off Industrial Average, says editor

(NEWSER) - General Motors and Citigroup are losing their spots on the Dow Jones Industrial Average after GM filed for bankruptcy, MarketWatch reports. Replacing them are Cisco Systems and The Travelers Companies. “A bankruptcy filing immediately disqualifies a stock regardless of a company's history or its role as a cultural icon,” said Dow Jones’ editor-in-chief. More»

(NEWSER) - Stocks plunged at the open, as banks sold shares to raise capital, and consumer and commodity stocks took a pounding, the Wall Street Journal reports. The Dow was down 140, the Nasdaq down 1.8% and the S&P off 2.1. Oil producers were hit hard as crude fell blow $58 a barrel, while Bank of America and Morgan Stanley led financials south, falling 3% and 2% respectively. More»

Geithner's cozy history with the high finance club draws critics' ire

(NEWSER) - While some feel Treasury Secretary Timothy Geithner has been an aggressive steward of the public trust, some critics point to his days as New York Fed president as proof he’s too cozy with the very banks that crippled the financial system. The New York Times investigates his tenure there, when he dined regularly with senior execs from Citigroup, Goldman Sachs, JPMorgan Chase, and Morgan Stanley. More»