Wachovia shares nosedive amid rising bank concernsSubmitted by cooper11 on Mon, 09/15/2008 - 18:27
Shares of the fourth-largest U.S. bank, already down more than 70 percent from a year ago, tumbled another $3.12, or 21.9 percent, to $11.15 in afternoon trading.
The steep decline reflected investors' anxiety about the financial sector in general and banks in particular after the credit crisis claimed two storied investment firms. Lehman Brothers Holdings Inc. filed for Chapter 11 bankruptcy protection after failing to find a buyer over the weekend, and Merrill Lynch & Co. sold itself to Bank of America Corp. to avoid a similar fate.
Analysts raised questions about the potential need for Wachovia to have to raise new capital to absorb future credit losses.