Investors aggressively sold financial stocks Tuesday after digesting fresh indications that housing prices will keep falling and banks will continue losing money on mortgage loans.
The market also appeared to be discounting the benefit of an upcoming plan from the Obama administration, expected Wednesday, to slow foreclosures and stop the decline of housing prices.
Financial stocks, as well as the broader market, failed to take any solace from President Obama’s signing the roughly $800 billion stimulus package, which passed Congress Friday. See full story on stimulus.
A few weeks ago, investors bid up financial stocks ahead of a scheduled announcement of a bank bailout plan from the Treasury, but they ended up disappointed when the plan failed to address a number of specifics.
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