U.S. Stocks Drop, Led by Financial Shares, AIG, Banks Retreat

“AIG tumbled to a 13-year low after Credit Suisse Group said the insurer may lose $2.41 billion this quarter on mortgage- related writedowns … Columbian Bank & Trust Co. became the ninth U.S. bank to collapse this year … About 865 million shares changed hands on the New York Stock Exchange, the slowest trading day of the year … All 10 industry groups in the S&P 500 dropped … The KBW Bank Index tumbled 3.4 percent as all 24 of its companies decreased … Lehman Brothers Holdings Inc. slipped 6.6 percent to $13.45 on concern that a Korean bank will abandon a potential investment in the fourth-largest U.S. securities firm.”

Here’s a chart of various debt ratios for AIG. I tried to get some long-term numbers (specifically debt-to-common equity) for brokers like Merrill and Lehman, but Bloomberg doesn’t have much data. I need to find one of those old guys who has saved 40 years worth of Value Line’s in his basement.

Related: AIG Shareholders in AIGony