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AP Business NewsBrief at 7:48 p.m. EDT
(AP Online Via Acquire Media NewsEdge) Dow finishes below 10,000 for first time since '04NEW YORK (AP) _ Wall Street joined in a worldwide cascade of despair Monday over the financial crisis, driving the Dow Jones industrials to their biggest loss ever during a trading day. Even a big afternoon rally failed to keep the Dow from its first close below 10,000 since 2004. The sell-off came despite the $700 billion U.S. government bailout package, which was signed into law Friday after two weeks in which traders had appeared to count on the rescue as their only hope to avoid a market meltdown.
Rescue plan disappointment contributes to sell-offWASHINGTON (AP) _ The government's $700 billion rescue, aimed at rebuilding economic confidence, appeared to sound a global alarm instead on Monday, triggering a fearful international sell-off as the U.S. began work on a plan that investors feared would be too little and too late to stave off a worldwide recession. As markets around the world tumbled amid fast-spreading anxiety, officials in Washington worked quickly to put the new financial plan into effect and to shovel more money into the banking system.
Bank of America reports profit drop, capital raiseNEW YORK (AP) _ Bank of America Corp. on Monday reported third-quarter results earlier than planned, revealing a wider-than-expected profit drop and plans to boost capital by selling $10 billion stock and halving its dividend. Like most other major financial institutions, Bank of America has been hit by significant losses in mortgages, credit cards and other souring debt. Its CEO also decided to acquire Countrywide Financial Corp., Merrill Lynch and La Salle Bank over the past year, three deals that are driving the need for extra cash.
Wachovia, Citigroup, Wells agree to standstillNEW YORK (AP) _ Wachovia, Citigroup and Wells Fargo on Monday agreed to a standstill of all formal litigation activity _ a sign that the banks and the Federal Reserve are working feverishly to reach an agreement over the fate of Wachovia. The standstill agreement will end at noon on Wednesday, unless extended.
ECB, euro nations try to soothe volatile marketsLUXEMBOURG (AP) _ European Central Bank President Jean-Claude Trichet called Monday for calm in the continent's jittery markets, saying they are overestimating risks and the euro-zone central bank stood ready to provide all the liquidity needed for as long as necessary. He spoke as European Union finance ministers discuss rules for guaranteeing all private savings _ after Ireland, Germany, Greece, Austria and Denmark alarmed other European neighbors by declaring separately that money held by ailing banks would be safe.
Eli Lilly to buy ImClone for more than $6BINDIANAPOLIS (AP) _ Eli Lilly & Co.'s winning bid of more than $6 billion for cancer drugmaker ImClone Systems means a billion-dollar payday for former rival bidder Bristol-Myers and vindication for corporate raider and ImClone Chairman Carl Icahn. Lilly said Monday it would pay $70 per share for New York-based ImClone. The acquisition, Lilly's largest ever, helps the Indianapolis drugmaker prepare for looming patent expirations and builds "a true oncology powerhouse," Lilly CEO John Lechleiter said.
Congress opens hearings on financial meltdownWASHINGTON (AP) _ The now-bankrupt investment bank Lehman Brothers arranged millions in bonuses for fired executives as it pleaded for a federal lifeline, lawmakers learned Monday, as Congress began investigating what went so wrong on Wall Street to prompt a $700 billion government bailout. The first in a series of congressional hearings on the roots of the financial meltdown yielded few major revelations about Lehman's collapse, and none about why government officials, as they scrambled to avert economic catastrophe, declined to rescue the flagging company while injecting tens of billions of dollars into others.
Credit markets still tight as stocks plungeNEW YORK (AP) _ The jammed credit markets barely budged Monday as governments around the world scrambled to prop up their failing banks and investors waited for details on how, exactly, the Treasury will go about buying $700 billion of U.S. banks' mortgage assets. If lending remains tight, it could cause more cash flow problems for the companies and municipalities that rely on the credit markets and banks for short-term loans.
EBay cutting 1,600 jobs, 10 percent of work forceNEW YORK (AP) _ After a series of changes designed to draw more people to its online marketplace, eBay Inc.'s latest alteration is aimed at its own employees. The auction site operator said Monday it will cut about 1,600 jobs, 10 percent of its work force, in its largest round of dismissals ever. About 1,000 full-time employees will be gone, while eBay will achieve the rest of the cuts by letting temporary and part-time workers go and by leaving open positions unfilled. EBay would not describe which positions would be cut, other than to say they will come across the company and around the world.
Oil prices fall as financial turmoil goes globalNEW YORK (AP) _ Oil prices plunged below $90 a barrel Monday, coming within reach of year-ago levels as a widening financial maelstrom spreads overseas and crimps global demand for energy. A barrel of oil has not been this cheap in eight months, suggesting that the climate in which oil soared to unheard of levels is coming to an abrupt end.
Copyright ? 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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