Morgan Stanley and Goldman Sachs shares take a dip
Shares of Wall Street firms Morgan Stanley and Goldman Sachs took a downward plunge on Wednesday and the UK’s biggest mortgage lender, HBOS Plc, looked set to be bought as distress signals emanate from the financial industry.
Shares of the two largest U.S. investment banks, Goldman Sachs and Morgan Stanley, fell 11 percent and 16 percent respectively in early trading.
Tuesday’s $85 billion rescue of insurer American International Group by the U.S. Federal Reserve did little to bring in some calm to Wall Street and other bourses around the world.
In the latest sign of regulatory anxiety, the U.S. Securities and Exchange Commission tightened enforcement of rules against abusive short-selling, or investor bets on declining share prices.