Saturday, October 16, 2010

Bank stocks keep falling as mortgage fears mount

Mortgage fears cause bank stocks to fall on friday. Mortgages that are left over from the housing collapse, however, there are not fears of fraud. For example Bank of America now has to review several thousand mortgage papers that were filed. In doing so legal fees will be tremendous. Furthermore, there is new uncertainty on how healthy banks really are, and weather they will be able to be able to pay bondholders.


Do you think that the government might have to provide money to banks again? Will the uncertainty effect only the finance sector or the whole market?

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