Bank stocks worldwide tumble
Banks stocks fell worldwide on Thursday as concerns swelled that soaring loan losses, tight credit and deteriorating economies would overwhelm lenders' efforts to cut costs and preserve capital.
European bank shares tumbled to an 11-year low, and U.S. banks approached a 12-year low, Reuters reports.
Goldman Sachs Group Inc set plans to cut 3,300 jobs, or 10 percent of its workforce, people familiar with the plan said, as the Wall Street stalwart copes with an expected downturn in trading and investment banking results.
In Europe, Credit Suisse Group confirmed details of a 1.3 billion Swiss franc ($1.1 billion) quarterly loss and said the rest of the year would be tough.
Swedish banks took a hit as Nordea Bank AB, Skandinaviska Enskilda Banken AB (SEB) and Swedbank AB reported lower operating profits, and Swedbank said it might take new capital from the Swedish savings banks that own it.
And in Canada, the government reinforced its banking sector with loan guarantees that will begin next month and continue at least until next May, mirroring large U.S. support programs. Finance Minister Jim Flaherty said the move would help ensure Canadian banks aren't at a competitive disadvantage.
The DJ Stoxx European banking index closed down 2.1 percent after earlier falling to its lowest level since 1997.