Afternoon Markets: Dow below 7,000 for first time since '97

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US market slid in early trading after AIG announced the largest ever corporate loss of over $60bn. ...

US market slid in early trading after AIG announced the largest ever corporate loss of over $60bn. The huge losses caused the main Wall Street index to open below 7,000 points for the first time since 1997. Shortly after 2.30pm, the Dow Jones had shed 133.25 points (1.89%) to 6,929.68. Despite its troubles, AIG's shares rose 14% in early trading as the Federal Reserve announced a new bail-out plan. However, regulators warned the problems at AIG posed a system risk for the entire financial system, and bank shares were hit by the news. Bank of America dropped 9.87% and JPMorgan Chas...

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