Investors took fright at the potential damage to the banks from their role in the energy trader's collapse, which has already brought down its auditor Andersen. Citigroup shares fell nearly 16 per cent on Tuesday with JP Morgan down 18 per cent, a combined loss of market value of over $34bn. Citigroup has lost a quarter of its value in two days.
Stunning!
I would be perfectly happy to see the Federal Reserve, or even the FDIC, take over both banks, chop them into little pieces, and sell them off to a multitude of other banks. As an ex-NYCer, I have had checking accounts with both banks, and can assure you they treat their little customers like absolute crap. I believe they'd both love to get out of serving the "little people" altogether, but are too afraid of the majorly bad PR they'd get from such a move.
They're greedy, they're snobby, they're apparantly acting illegally. I say take them out with extreme prejudice.