Stocks fall ahead of gov't report card on banks

Stocks slip ahead of decision on which banks can repay bailout funds; European markets drop

Stephen Bernard, AP Business Writer
On Monday June 8, 2009, 9:58 am EDT

NEW YORK (AP) -- Investors turned away from stocks ahead of the latest government report card on banks.

Stocks fell Monday, sending the Dow Jones industrial average down by about 100 points. Overseas markets also pulled back.

The government is expected to announce as early as Monday which banks will be allowed to return bailout funds. JPMorgan Chase & Co., Goldman Sachs Group Inc. and American Express Co. are expected to get approval to repay their loans, according to The Washington Post.

Other banks that were told by the government last month to raise funds to help protect against a potential worsening in the economy must submit plans Monday about how they are raising that capital.

Investors are also booking some gains from the market's three-month rally as concerns linger about the economy. The Standard & Poor's 500 index has surged 39 percent from a 12-year low on March 9. Interest rates on government bonds are higher and oil prices are near six-month highs.

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