Financial and real estate exchange traded funds (ETFs) have got a real case of the Mondays.
Uncertainty still abounds in the financial sector. Lehman Brothers (LEH) shares dropped midday after speculation about the future of its CEO and the bank’s independence, reports the Associated Press. The Korean Development Bank is rumored to be thinking about making a bid, but the bank’s spokesman declined to comment.
Meanwhile, Lehman’s CEO is facing a campaign to have him give up day-to-day control. Lehman Brothers is the nation’s fourth-largest investment bank and considered to be the most vulnerable to the credit crisis.
AIG’s (AIG) shares dropped to a 13-year low after Credit Suisse forecast a huge loss for the insurer. Currently, Credit Suisse estimates that AIG’s financial products are sitting on a $6.5 billion loss. The brokerage had previously estimated a $2.6 billion loss, report Eric Yep and Jonathan Spicer for Reuters.