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U.S. markets tumble again |
Baja Real Estate & Economy News
 (CNN) -- U.S. stocks slumped Thursday as the Treasury considered buying stakes in struggling banks.
The benchmark Dow Jones plummeted through the 9,000-mark with early tallies indicating the close nudging 8,600 points. At the start of the week it was trading above 10,000.
The White House confirmed earlier Thursday that the U.S. Treasury Department is looking at buying equity stakes in some U.S. banks.
Spokesperson Dana Perino confirmed reports that the U.S. could soon join the United Kingdom, Iceland and Italy in announcing a plan to inject capital directly into their troubled banking systems.
"These capital injections are something that Secretary (Henry) Paulson is actively considering," said Perino. She said she could not comment on the timing or extent of such investments.
The move would be made under the $700 billion Wall Street bailout passed by Congress on Friday.
But the possibility of Treasury intervention failed to reassure investors amid the ongoing credit crisis.
On the one-year anniversary of the Dow's all-time high of above 14,000, the index closed about 7 percent down at about 8,500. Other major New York markets the Nasdaq and the S&P fell about 5.4 percent and 7.6 percent respectively.
Gary Webb, CEO at Webb Financial Group said: "What the Fed has done is eventually going to help turn things around, but people don't believe it yet. They're acting on fear."
London's FTSE 100 was down 1.24 percent, France's CAC-40 down 1.55 percent and Germany's Dax lost 2.53 percent. Video
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