The following is an excerpt from Avi Salzman | July 10, 2012 | Barrons.com |
It appeared early in the day that stocks would mark their first gains in the past four sessions. But afternoon trading turned sour, as engine-maker Cummins (CMI) slashed its revenue guidance on slowing global sales and reports began to leak about the fine print of the deal to recapitalize Spain’s banks.
The Dow ended the day down 83 points, or 0.65%. The S&P 500 fell 11 points, or 0.81%.
Spain is being told by European authorities that its banks need to write off preferred shares and subordinated bonds in order to qualify for a eurozone bailout, according to a draft memorandum obtained by the FT. Bank shareholders will have to take large losses before the eurozone invests. And the Bank of Spain will have to transfer supervisory power to the European Commission, IMF and European Central Bank. The bailout also…..
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