Fraud Scandals Spark Market Selloff as ‘Cockroach’ Credit Fears Mount
Market Selloff Fueled by Loan Fraud Fears Wall Street skidded into the red late this week as fear of hidden loan losses gripped the market. On Thursday (Oct. 16), the Dow, S&P 500, and Nasdaq all closed sharply lower – around 0.5%–1% down each for the day reuters.com – after early gains evaporated. The Dow Jones index gave up roughly 300–400 points, about 0.65%, by the closing bell reuters.com. The reversal came suddenly after midday news of loan problems at two regional banks hit traders’ screens. “Signs of weakness in regional banks spooked investors already on edge,” Reuters noted, especially