Asian markets hit by CIT bankruptcy, Wall Street fall

[Joanne98]

Source: Channel News Asia

HONG KONG - Asian markets tumbled Monday as a heavy loss on Wall Street at the end of last week was compounded by the bankruptcy of US bank CIT at the weekend, hitting confidence for a global economic recovery.

Tokyo lost 2.31 percent, Sydney 2.21 percent and Seoul 1.37 percent as dealers went into selloff mode. Hong Kong lost 0.61 percent, after having been almost three percent lower at one point.

Stocks had bounced on Friday after the US announced it had moved out of its worst recession in decades.

But sentiment in New York was soon crushed, sending the Dow 2.51 percent down before the weekend.

And on Sunday CIT Group, one of the largest small-business lenders in the United States, filed for Chapter 11 bankruptcy -- the fifth biggest in US history.


Read more: http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/1015368/1/.html

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The only reason our futures are up is because the dollar got hit again.

[ixion]

1. and taxpayers are out 2.3 billion...

http://marketplace.publicradio.org/display/web/2009/10/07/pm-reich/

It's interesting. If you declare bankruptcy, you still have to pay your government-backed student loans. But all these guys had to do to dump 2.3 billion of government-backed debt is -- wait for it: declare bankruptcy.

Funny how that works.

[Purveyor]

2. 11:15am est: DJIA UP 112, S&P UP 11.77, NASDAQ UP 16

Just the facts...