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The meeting cancellation before a major summit of European Union state leaders spooked the markets Tuesday, according to multiple news outlets, leading the Dow Jones Industrial Average into a 207-point nosedive and slashing stocks and shares for the nation's mortgage lenders.
[IMAGE]The investor selloff wiped clean three days of otherwise solid gains for bank stocks and shares, which deflated on news that troubled economic heavyweights Greece and Italy may still tumble.
Stocks for ""Morgan Stanley"":http://www.morganstanley.com/ fell most sharply following the bank's ""announcement"":https://themreport.com/articles/morgan-stanley-plans-to-exit-mortgage-servicing-2011-10-25 that it means to trade in on a residential mortgage unit and leave the servicing industry. The financial institution saw its stocks dip by 3.67 percent with shares tying up at $16.52.
""Wells Fargo"":https://www.wellsfargo.com/ followed shortly after, with stocks for the mortgage giant declining by 3.66 percent to wrap up shares at $25.55. ""Goldman Sachs"":http://www2.goldmansachs.com/ tracked the company
[COLUMN_BREAK]with a 3.40-percent squeeze that finished shares for the day at $100.44, still the strongest of the companies by sheer dollar volume.
""JPMorgan Chase"":http://www.jpmorganchase.com/corporate/Home/home.htm saw its shares drop to $33.49 as its stocks declined by 3.12 percent, while ""Citigroup"":http://www.citigroup.com/citi/homepage/ stayed out of the 3-percent territory, tying off shares at $30.90 on a 2.22-percent downward slope.
""_Reuters_"":http://www.reuters.com/article/2011/10/25/us-eurozone-meeting-idUSTRE79O42S20111025 reported the trouble beginning with European Union finance ministers who voided a Wednesday meeting, days ahead of a major summit with state leaders and other officials who will decide the fate of a bailout package for Greece.
The news service quoted a spokesperson for European Council President Herman Van Rompuy as saying, ""Ministers of finance may meet in the coming days to fine-tune decisions that will be taken tomorrow. There is no new summit planned.""
In past interviews, sources speaking with _MReport_ have said that any sizeable trouble in euro zone markets could ""sink financial assets for U.S. banks"":https://themreport.com/articles/how-european-debt-debacle-could-stifle-housing-2011-08-12 with billions at stake.
Falling stocks and shares Tuesday added to fears that a wave of troubled assets could hit the financial institutions and break up the common currency for 25 European nations.
""The sovereign debt crisis threatens the very existence of the eurozone,"" ""CNN"":http://money.cnn.com/2011/10/25/news/international/europe_crisis_talks/index.htm?hpt=hp_t1 quoted ""Howard Archer"":http://www.ihs.com/capabilities/experts/howard-archer.aspx?pu=1&rd=globalinsight_com, chief European economist with ""IHS Global"":http://www.ihs.com/, as saying. ""It is therefore absolutely imperative that European policymakers finally deliver a major package.""
