Grim Week Ahead For Wall Street - MarketWatch Sydney, November 04: Marketwatch is predicting a rough ride ahead this week for Wall Street. Marketwatch states that the market will fall due to concern over poor earnings, oil heading to 100 dollars per barrel and more turmoil in the banking and broking industries. The article states that Citigroup will be at the centre of the turmoil on Monday after an emergency weekend board meeting reportedly ousted Citigroup CEO Charles Prince. The WSJ reported after the market closed on Friday that besides asking for Prince's resignation at the weekend emergency meeting, Citigroup may report further losses on Monday, reflecting continued declines in the value of some mortgage-linked securities since the third quarter ended Sept. 30, people familiar with the matter said.
The article also notes that "The SEC is reviewing how Citigroup accounted for certain off-balance-sheet transactions that are at the heart of a banking- industry rescue plan, according to people familiar with the matter. The review is looking at whether Citigroup appropriately accounted for 80 BLN USD in structured investment vehicles, or SIVs, these people said. SIVs are off- balance-sheet entities that have invested heavily in mortgage-backed securities. A plan pushed by Citigroup and other banks would set up a new "superconduit" to buy assets from SIVs."
Citigroup shares flew higher in after-hours trading and made back more than it lost when the WSJ originally reported that Prince was likely to resign at the emergency board meeting on Sunday. But that was before this second WSJ report.
The worsening state of quarterly results from Corporate America may pull stocks lower as well, with a 1.6% decline in earnings, down from a 1% decline last week, according to data from Thomson Financial.
The article also notes that "The SEC is reviewing how Citigroup accounted for certain off-balance-sheet transactions that are at the heart of a banking- industry rescue plan, according to people familiar with the matter. The review is looking at whether Citigroup appropriately accounted for 80 BLN USD in structured investment vehicles, or SIVs, these people said. SIVs are off- balance-sheet entities that have invested heavily in mortgage-backed securities. A plan pushed by Citigroup and other banks would set up a new "superconduit" to buy assets from SIVs."
Citigroup shares flew higher in after-hours trading and made back more than it lost when the WSJ originally reported that Prince was likely to resign at the emergency board meeting on Sunday. But that was before this second WSJ report.
The worsening state of quarterly results from Corporate America may pull stocks lower as well, with a 1.6% decline in earnings, down from a 1% decline last week, according to data from Thomson Financial.