The US Stock markets has fallen sharply as the culmination of a weak dollar, soaring oil prices and the credit crisis eroded confidence.
The Dow Jones index of leading shares stumbled 360.92 points (2.6%) and banking stocks were widely sold as fears over financial problems facing Wall Street showed no signs of slowing down.
One bank in particular, Morgan Stanley, said exposure to bad sub-prime related investments had reduced its own profits by $2.5bn.
Over the weekend, Charles Prince, chairman and CEO of Citigroup, resigned his post when the bank reported a 57% drop in quarterly profits, after losses in the sub-prime mortgage market. Next, the head of Merrill Lynch, Stan O’Neal, resigned after reporting heavy losses.
And what do they put most of it down to? Accounting charges.
There must be some seriously rich accountants staggering around Manhattan belching vintage champagne fumes … and on a school night too.
