NEW YORK (AP) - Stocks have stepped up their selling in the
final hour of trading. The Dow Jones industrial average is off more
than 600 points, dropping below the 9,000 mark for the first time
in five years.
Financial, energy and health care stocks led the decline
Thursday. General Motors Corp. led the Dow lower, falling nearly 30
percent.
The Dow is down 645.62, or 6.97 percent, to 8,612.48. The blue
chips hadn't fallen below the 9,000 level since Aug. 6, 2003.
Sound off about the rollercoaster ride on Wall Street in Amy Wood's Blog. We may feature your comments on News Channel 7.
Government Considers Bank Takeovers
WASHINGTON (AP) - A Bush administration official says one thing being considered as the 700 billion dollar financial rescue is put into action is the government taking part ownership of certain banks.
The official says the rescue package passed by Congress last week allows the Treasury to inject financial institutions with fresh capital in exchange for ownership shares.
The approach has the support of lawmakers such as Senator Charles Schumer. The New York Democrat has argued that it would be an effective way of bolstering bank balance sheets and prompt them to resume lending, while also giving taxpayers the benefit of an equity stake in the bank. In a statement, Schumer says the idea could prove to be "the most promising tool" available to the Treasury.
Speaking on condition of anonymity, the administration official says all new powers granted in the legislation are being considered.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
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