http://news.yahoo.com/s/nm/20070809/...hupDXfjOlv24cA
Wall St sinks as subprime troubles spread
Reuters
By Jennifer Coogan 41 minutes ago
Stocks tumbled on Thursday, with the Dow and S&P down nearly 3 percent, after a French bank froze three funds that invested in U.S. subprime mortgages, prompting central banks to take steps to calm investors.
Evidence the U.S. mortgage market crisis was having a global impact and spreading to other markets hammered financial stocks.
Goldman Sachs Group(GS.N) dropped nearly 6 percent after the Wall Street Journal reported a second fund managed by the investment bank was under pressure to sell assets after falling in value. The S&P financial index fell 3.8 percent and the sector was one of the biggest drags on the S&P 500.
"The Fed has said the subprime issue is contained," said Hugh Moore, partner with research-based advisory firm Guerite Advisors in Greenville, South Carolina, referring to the Federal Reserve. "It's spread not just outside the industry, but outside the U.S. That really has people spooked."



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