new York Another sell-off in the US banking sector on fears of a new financial crisis set Wall Street back on Friday. The Dow Jones Index of Standard Values was down more than 1.2 percent through early midday trading, falling well below the 32,000 point mark.
The broader S&P 500 was down 1.1 percent below 4,000 points, while the Nasdaq index fell 1.4 percent to around 11,600 points. The S&P 500 banking index lost around 4.4 percent.
Shares in First Republic Bank slipped about 20 percent after the ailing regional bank received a stimulus package. A total of eleven major US banks such as JP Morgan and Citigroup have invested $30 billion in the smaller financial institution.
The package for the American money house does not appear to be sufficient for investors to reduce the risks, said expert Victoria Scholar from the British online investment service Interactive Investor.
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