The shares of major U.S. banks plunged on Tuesday amid fears that Washington’s bailout movements were coming to a stop. Several investors also expressed their disappointment at efforts made by the outgoing Bush Administration to the tune of $700 billion, which haven’t really stabilized the banking system yet.
Shares of Bank of America dropped a dramatic 29 percent, those of Citigroup 20 percent, JPMorgan Chase saw drops of over 20% and State Street Corp. shares dived 59 percent. This is a hefty drop in share prices and not a very reassuring situation while Obama took the oath of office. The situation clearly calls for Obama to take quick and bold measures as he takes on the Presidency of the United Sates of America.
The shocking drops in share values of such major U.S. banks, came a day after the UK government announced a second bailout for its banks. As the global economic and financial crisis worsens day by day, the world looks towards the United State of America for answers; asking themselves What will the next move be? Will we be spared further declines? Only time will tell.
Image by neubie under Creative Commons.
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