Wednesday, November 16, 2011 – 01:50 p.m.
Rumors have started circulating on Wall Street this afternoon surrounding the solvency of investment banks Jeffries & Co. and Morgan Stanley.
The stock of the two companies was pounded today after a report from Fitch Ratings stated that U.S. financial institutions may be exposed to problems impacting European Unions banks.
The pressure on Jeffries and Morgan follows the collapse of MF Global. MF Global succumbed after making huge bets on European debt.
Recall back to 2008.
The rumors of back problems started and then a banking crisis ensued.
If there’s a problem the markets as always will settled the matter in very short order.
Expect hedger’s to start pressuring the stocks of the perceived weak.
Hopefully the domino’s don’t fall too far.
The clock is ticking…