U.S. Stocks Fall, Led by Financials; Washington Mutual Tumbles

July 14 (Bloomberg) -- U.S. stocks fell, sending financial shares to their lowest level since October 1998, on heightened concern that bank failures will spread.

Washington Mutual Inc. posted its biggest drop ever and National City Corp. tumbled to a 24-year low after last week's collapse of IndyMac Bancorp Inc. spurred speculation that regional banks are short of capital. The companies said they've seen no unusual depositor activity. Fannie Mae and Freddie Mac erased an earlier rally fueled by Treasury Secretary Henry Paulson's plan to help rescue the largest U.S. mortgage lenders.

Source: Bloomberg


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