Wall Street is afraid of the carmakers

The Dow Jones fell 3.4% to 7511 points. The broad market S & P-500 also lost 3.4% to 788 meters. The Nasdaq Composite fell 3.6% to 1489 points. Thus, Wall Street extended its already heavy losses in stock market opening further.

Bad news from the automotive industry power flows to the U.S. stock markets: the U.S. government to Barack Obama rejected the redevelopment plans of the beleaguered automaker General Motors (GM) and Chrysler from. None of the companies have a solid plan, the additional billions of dollars worth taxpayers’ money, said members of the government. Chrysler is still 30 days time and money, GM 60 days. GM Chief Wagoner came under pressure from the government.

Also in the banking industry are following the recent price gains back to dark clouds: both JPMorgan and Bank of America had already indicated on Friday that the transaction in March was more difficult than in January and February. Moreover, according to a newspaper report the results of the Swiss bank UBS of further writedowns of at least 1.5 billion euros will be charged. It also accelerated the near collapse of Spanish descent, the regional bank.

Among the biggest losers on Wall Street had a share of GM with a slip rate of 25%. The shares of rivals Ford gave 7%. Even if the banks were in negative double-digit rates: Citigroup bent by 13% to Bank of America was 11% lower traded. Wells Fargo and JP Morgan fell by 7%.