Reply #122: Market plunges on heightened credit fears

[Eugene]

Source: Reuters

Market plunges on heightened credit fears
Wed Nov 7, 2007 4:37pm EST

By Caroline Valetkevitch

NEW YORK (Reuters) - Stocks tumbled on Wednesday as
a probe of the home loan industry by New York's attorney
general drew in the country's biggest mortgage finance
companies and Washington Mutual Inc warned the housing
downturn would extend well into next year.

The S&P 500 had its biggest daily percentage drop since
August.

New York Attorney General Andrew Cuomo said his office
was sending subpoenas to government-sponsored mortgage
financiers Fannie Mae and Freddie Mac as part of a probe
of the home loan industry.

Also, Washington Mutual Inc, the largest U.S. savings and
loan company, said the housing slump will persist through
2008, loan losses will rise and mortgage lending will fall
to an eight-year low. Washington Mutual was also a focus
of Cuomo's investigation.

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Read more: http://www.reuters.com/article/topNews/idUSL3057195020071107