Francesco Guerrera and Jonathan Birchall
November 11, 2008
The credit storm swept through Wall Street and Main Street with renewed virulence on Monday as AIG and Fannie Mae reported huge losses, a leading US retailer filed for bankruptcy and multinationals such as DHL cut thousands of jobs.
- A d v e r t i s e m e n t
The bad news from both the financial and corporate sectors underlined the broadening of a crisis that claimed its first victims among banks and insurers but has now spread through the global economy.
Robert Zoellick, president of the World Bank, was set to announce on Tuesday a big increase in financial support for developing countries caught up in the credit crisis. The move comes ahead of this weekend’s G20 summit on the world economy, which will bring together leaders from leading industrialised and developing nations. The S&P 500 index on Monday fell 1.3 per cent as investors reacted to the poor performance of sectors ranging from insurance to logistics, and the announcement that the US electronics retailer Circuit City had filed for bankruptcy protection.